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Entrepreneurship and country-level innovation: investigating the role of entrepreneurial opportunities

Author

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  • Matthias Mrożewski

    (Technische Universität Berlin)

  • Jan Kratzer

    (Technische Universität Berlin)

Abstract

Since the work of Schumpeter, entrepreneurship has been regarded as a concept that is in close relation to innovation. However, recent country level investigations show that technology innovation and new business creation can be regarded as two separate phenomena. In this paper we provide an explanation for the above contradiction through the distinguishing between two types of entrepreneurship, necessity and opportunity entrepreneurship. Building on opportunity theory and rational choice theory, we investigate the influence of both types of entrepreneurship on country-level innovation, and furthermore, pay particular attention to the interaction between opportunity entrepreneurship and the amount of opportunities available. We find that necessity entrepreneurship is inversely related to country-level innovation, whereas opportunity entrepreneurship is positively linked to technological progress. The positive effect of opportunity entrepreneurship, however, diminishes with an increased amount of entrepreneurial opportunities. This interaction indicates that opportunity availability is an important element of a country’s entrepreneurship environment.

Suggested Citation

  • Matthias Mrożewski & Jan Kratzer, 2017. "Entrepreneurship and country-level innovation: investigating the role of entrepreneurial opportunities," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1125-1142, October.
    • Handle: RePEc:kap:jtecht:v:42:y:2017:i:5:d:10.1007_s10961-016-9479-2
    DOI: 10.1007/s10961-016-9479-2
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    5. Cervelló-Royo, R. & Moya-Clemente, I. & Perelló-Marín, M.R. & Ribes-Giner, G., 2020. "Sustainable development, economic and financial factors, that influence the opportunity-driven entrepreneurship. An fsQCA approach," Journal of Business Research, Elsevier, vol. 115(C), pages 393-402.
    6. Benhong Peng & Yinyin Zhao & Ehsan Elahi & Anxia Wan, 2022. "Does the business environment improve the competitiveness of start‐ups? The moderating effect of cross‐border ability and the mediating effect of entrepreneurship," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1173-1185, September.
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    9. Fang, Hanqing & Chrisman, James J. & Memili, Esra & Wang, Minglin, 2020. "Foreign venture presence and domestic entrepreneurship: A macro level study," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 68(C).
    10. Emilia Herman, 2022. "The Interplay between Digital Entrepreneurship and Sustainable Development in the Context of the EU Digital Economy: A Multivariate Analysis," Mathematics, MDPI, vol. 10(10), pages 1-28, May.
    11. Khanh Hung DOAN, 2021. "The Relationship Between Entrepreneurship And National Competitiveness," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 65-76, December.
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    17. Ratan J. S. Dheer & Len J. Treviño, 2022. "Explaining the rate of opportunity compared to necessity entrepreneurship in a cross-cultural context: Analysis and policy implications," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 29-55, March.
    18. Fang, Zhen & Razzaq, Asif & Mohsin, Muhammad & Irfan, Muhammad, 2022. "Spatial spillovers and threshold effects of internet development and entrepreneurship on green innovation efficiency in China," Technology in Society, Elsevier, vol. 68(C).
    19. Yao Yao & Wencheng Zhao & Shaopeng Zhang, 2023. "Effects of Government Innovation Support on the Innovation Ability of Universities: Evidence from the Quasi-Natural Experiment of China’s Innovation and Entrepreneurship Pilot Demonstration Policy," Sustainability, MDPI, vol. 15(1), pages 1-15, January.
    20. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.

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    More about this item

    Keywords

    Entrepreneurial opportunities; Necessity entrepreneurship; Opportunity entrepreneurship; Innovation; Entrepreneurial opportunity availability;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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