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Revisiting the knowledge spillover paradox: the impact of infrastructure

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  • Ronja Kirschning

    (Jean-Baptiste Say Institute)

  • Matthias Mrożewski

    (Jean-Baptiste Say Institute)

Abstract

Knowledge is regarded as a key driver of entrepreneurial activity and economic performance. Nevertheless, empirical evidence suggests that the extent to which knowledge spills over and translates into entrepreneurial activity differs tremendously across different regions. These inconsistent results expose the knowledge spillover mechanism as a concept that is not well understood. This paper is one of the few studies to propose an explanation for the seemingly inconclusive results that we find in the literature by considering the role of infrastructure in knowledge spillovers. Using a dataset of 67 countries, we examine the impact of different types of physical and digital infrastructure on the knowledge spillover mechanism. Our empirical results reveal that the extent to which knowledge translates into entrepreneurial activity largely depends upon the development of specific types of digital and physical infrastructure. This paper provides valuable insights into the knowledge spillover mechanism by identifying certain factors that influence the extent to which knowledge translates into entrepreneurial activity. Furthermore, it has important policy implications for countries to promote entrepreneurial activity and economic performance by developing certain types of physical and digital infrastructure.

Suggested Citation

  • Ronja Kirschning & Matthias Mrożewski, 2024. "Revisiting the knowledge spillover paradox: the impact of infrastructure," Small Business Economics, Springer, vol. 63(1), pages 1-20, June.
    • Handle: RePEc:kap:sbusec:v:63:y:2024:i:1:d:10.1007_s11187-023-00833-8
    DOI: 10.1007/s11187-023-00833-8
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    More about this item

    Keywords

    Knowledge spillover theory of entrepreneurship; Digital infrastructure; Physical infrastructure; Country-level entrepreneurship;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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