Entrepreneurship, firms creation and regional performance

  1. Rico, Paz 1
  2. Cabrer-Borrás, Bernardí 1
  1. 1 Universitat de Valencia, España
Revista:
European journal of management and business economics

ISSN: 2444-8494,  2444-8451

Año de publicación: 2019

Título del ejemplar: Global innovation & knowledge management

Volumen: 28

Número: 2

Páginas: 158-173

Tipo: Artículo

DOI: 10.1108/EJMBE-07-2018-0077 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: European journal of management and business economics

Objetivos de desarrollo sostenible

Resumen

Purpose The purpose of this paper is to analyse if the divergences in the economic growth of the Spanish regions are a result of sectoral differences, company size or technological level of the new firms that emerge in the market. Design/methodology/approach For this purpose, a model is specified and estimated in which the total factor productivity of Spanish regions is explained by business dynamics, innovation, human capital and the level of entrepreneurship in each region. Findings The results obtained lead the authors to conclude that entrepreneurship understood as both the creation of new firms and entrepreneurial activity, have a positive effect on productive efficiency and can explain the differences in the economic growth of the regions. In addition, the stock of human capital and the promotion of innovation act as catalysts for the productive efficiency of the regions. However, the results show that it is not enough to generate new firms to boost economic growth; these businesses must also be oriented towards sectors that promote technological innovation and with the objective to reach an adequate size. Originality/value Empirical studies use either the creation of new firms or the index of entrepreneurial activity as alternative measures of entrepreneurship. In this research, however, both variables are considered together. Specifically, the creation of new companies is used as a measure of regional business dynamics, and the entrepreneurial activity index, provided by the Global Entrepreneurship Monitor, as a measure of regional entrepreneurship. The main novelty of this paper’s approach is that it considers different types of entrepreneurial capital in considering productive sector, size and technological level of the new companies.

Referencias bibliográficas

  • Acs, Z. (2006), “How is entrepreneurship good for economic growth?”, Innovations: Technology, Governance, Globalization, Vol. 1 No. 1, pp. 97-107.
  • Acs, Z.J., Audretsch, D.B., Lehmann, E. and Licht, G. (2017), “National systems of innovation”, Journal of Technology Transfer, Vol. 42 No. 5, pp. 997-1008.
  • Acs, Z.J., Estrin, S., Mickiewicz, T. and Szerb, L. (2018), “Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective”, Small Business Economics, Vol. 51 No. 2, pp. 501-514, available at: https://doi.org/10.1007/s11187-018-0013-9
  • Aghion, P. (2017), “Entrepreneurship and growth: lessons from an intellectual journey”, Small Business Economics, Vol. 48 No. 1, pp. 9-24.
  • Aghion, P. and Howitt, P.A. (1992), “Model of growth through creative destruction”, Econometrica, Vol. 60 No. 2, pp. 323-351.
  • Aubry, M., Bonnet, J. and Renou-Maissant, P. (2015), “Entrepreneurship and the business cycle: the ‘Schumpeter’ effect versus the ‘refugee’ effect – a French appraisal based on regional data”, The Annals of Regional Science, Vol. 54 No. 1, pp. 23-55.
  • Audretsch, D.B. (2007), “Entrepreneurship capital and economic growth”, Oxford Review of Economic Policy, Vol. 23 No. 1, pp. 63-78.
  • Audretsch, D.B. and Keilbach, M. (2004), “Entrepreneurship capital and economic performance”, Regional Studies, Vol. 38 No. 8, pp. 949-959.
  • Audretsch, D.B. and Keilbach, M. (2008), “Resolving the knowledge paradox: knowledge-spillover entrepreneurship and economic growth”, Research Policy, Vol. 37 No. 10, pp. 1697-1705.
  • Audretsch, D.B., Keilbach, M. and Lehmann, E.E. (2006), Entrepreneurship and Economic Growth, Oxford University Press, New York, NY.
  • Barro, R.J. (2001), “Human capital and growth”, American Economic Review, Vol. 91 No. 2, pp. 12-17.
  • Barro, R.J. and Lee, J.W. (1993), “International comparisons of educational attainment”, Journal of Monetary Economics, Vol. 32 No. 3, pp. 363-394.
  • Barro, R.J. and Sala-i-Martin, X. (1995), Economic Growth, MIT Press, Cambridge, MA.
  • Baumol, W.J. (1990), “Entrepreneurship: productive, unproductive and destructive”, Journal of Political Economy, Vol. 98 No. 5, pp. 893-921.
  • Baumol, W.J. (1993), “Formal entrepreneurship theory in economics: existence and bounds”, Journal of Business Venturing, Vol. 8 No. 3, pp. 197-210.
  • Becker, G.S. (1975), Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, National Bureau of Economic Research (NBER), ISBN: 0-226-04109-3, New York, NY.
  • Bjørnskov, C. and Foss, N. (2013), “How strategic entrepreneurship and the institutional context drive economic growth”, Strategic Entrepreneurship Journal, Vol. 7 No. 1, pp. 50-69.
  • Bjørnskov, C. and Foss, N.J. (2016), “Institutions, entrepreneurship, and economic growth: what do we know and what do we still need to know?”, Academy of Management Perspectives, Vol. 30 No. 3, pp. 292-315.
  • Braunerhjelm, P., Acs, Z.J., Audretsch, D.B. and Carlsson, B. (2010), “The missing link: knowledge diffusion and entrepreneurship in endogenous growth”, Small Business Economics, Vol. 34 No. 2, pp. 105-125.
  • Callejón, M. and Segarra, A. (1999), “Business dynamics and efficiency in industries and regions: the case of Spain”, Small Business Economics, Vol. 13 No. 4, pp. 253-271.
  • Carree, M.A. and Thurik, R. (2008), “The lag structure of the impact of business ownership on economic performance in OECD countries”, Small Business Economics, Vol. 30 No. 1, pp. 101-110.
  • Carree, M.A. and Thurik, R. (2010), “The impact of entrepreneurship on economic growth”, in Acs, Z.J. and Audretsch, D.B.D. (Eds), Handbook of Entrepreneurship Research, International Handbook Series on Entrepreneurship, Springer, New York, NY, Vol. 5, pp. 557-594, doi: 10.1007/978-1-4419-1191-9.
  • Cobb, C. and Douglas, P. (1928), “A theory production”, The American Economic Review, Vol. 18 No. 1, pp. 139-165.
  • Coe, D.T. and Helpman, E. (1995), “International R&D spillovers”, European Economic Review, Vol. 38 No. 5, pp. 859-887.
  • Cuadrado, P. and Moral, E. (2016), “El crecimiento potencial de la economía española”, Banco de España, Documentos Ocasionales, No. 1603, Madrid.
  • Dejardin, M. and Fritsch, M. (2011), “Entrepreneurial dynamics and regional growth”, Small Business Economics, Vol. 36 No. 4, pp. 419-442.
  • Erken, H., Donselaar, P. and Thurik, R. (2016), “Total factor productivity and the role of entrepreneurship”, Journal Technology Transfer, Vol. 43 No. 6, pp. 1493-1521, available at: https://doi.org/10.1007/s10961-016-9504-5
  • Fritsch, M. (2008), “How does new business formation affect regional development? Introduction to the special issue”, Small Business Economics, Vol. 30 No. 1, pp. 1-14.
  • Fritsch, M. and Schroeter, A. (2011), “Why does the effect of new business formation differ across regions”, Small Business Economics, Vol. 36 No. 4, pp. 383-400.
  • González-Pernía, J.L. and Peña-Legazkue, I. (2015), “Export-oriented entrepreneurship and regional economic growth”, Small Business Economics, Vol. 45 No. 3, pp. 505-522.
  • Griliches, Z. (1998), R&D and Productivity: the Econometric Evidence, University of Chicago Press, Chicago, IL.
  • Griliches, Z. and Lichtenberg, F.R. (1984), “R&D and productivity growth at the industry level: is there still a relationship?”, in Griliches, Z. (Ed.), R&D, Patents, and Productivity, Chicago University Press and NBER, Chicago, IL, pp. 465-496.
  • Guellec, D. and Van Pottelsberghe de la Potterie, B.P. (2004), “From R&D to productivity growth: do the institutional settings and the source of funds of R&D matter?”, Oxford Bulletin of Economics and Statistics, Vol. 66 No. 3, pp. 353-378.
  • Holtz-Eakin, D. and Kao, C. (2003), “Entrepreneurship and economic growth: the proof is in the productivity”, Working Paper No. 50, Center for Policy Research, Syracuse.
  • Huggins, R. and Thompson, P. (2015), “Entrepreneurship, innovation and regional growth: a network theory”, Small Business Economics, Vol. 45 No. 1, pp. 103-128.
  • Jacobs, B., Nahuis, R. and Tang, P.J.G. (2002), “Sectoral productivity growth and R&D spillovers in the Netherlands”, De Economist, Vol. 150 No. 2, pp. 181-210.
  • Kato, M. and Honjo, Y. (2015), “Entrepreneurial human capital and the survival of new firms in high- and low-tech sectors”, Journal of Evolutionary Economics, Vol. 25 No. 5, pp. 925-957.
  • Koellinger, P.D. and Thurik, A.R. (2012), “Entrepreneurship and the business cycle”, Review of Economics and Statistics, Vol. 94 No. 4, pp. 1143-1156.
  • Krugman, P. (1994), The Age of Diminished Expectations, The MIT Press, Cambridge, MA.
  • Lucas, R. (1988), “On the mechanics of economic development”, Journal of Monetary Economics, Vol. 22 No. 1, pp. 3-42.
  • Lucas, R. (1993), “Making a miracle”, Econometrica, Vol. 61 No. 2, pp. 251-272.
  • Mincer, J. (1984), “Human capital and economic growth”, Economics of Education Review, Vol. 3 No. 3, pp. 195-205.
  • OECD (2008), A Framework for Addressing and Measuring Entrepreneurship, OECD Publishing, Paris.
  • Prieger, J.E., Bampoky, C., Blanco, L.R. and Liu, A. (2016), “Economic growth and the optimal level of entrepreneurship”, World Development, Vol. 82 No. C, pp. 95-109.
  • Romer, P.M. (1986), “Increasing returns and long-run growth”, The Journal of Political Economy, Vol. 94 No. 5, pp. 1002-1037.
  • Schumpeter, J. (1934), The Theory of Economic Development, Transaction Publishers, New Brunswick.
  • Sevilir, M. (2010), “Human capital investment, new firm creation and venture capital”, Journal of Financial Intermediation, Vol. 19 No. 4, pp. 483-508.
  • Solow, R.M. (1956), “A contribution to the theory of economic growth”, The Quarterly Journal of Economics, Vol. 70 No. 1, pp. 65-94.
  • Sussan, F. and Acs, Z.J. (2017), “The digital entrepreneurial ecosystem”, Small Business Economics, Vol. 49 No. 1, pp. 55-73.
  • Thurik, A.R., Carree, M.A., Van Stel, A.J. and Audretsch, D.B. (2008), “Does self-employment reduce unemployment?”, Journal of Business Venturing, Vol. 23 No. 6, pp. 673-686.
  • Van Praag, C.M. and Van Stel, A. (2013), “The more business owners, the merrier? The role of tertiary education”, Small Business Economics, Vol. 41 No. 2, pp. 335-357.
  • Van Praag, C.M. and Versloot, P. (2007), “What is the value of entrepreneurship?”, Small Business Economics, Vol. 29 No. 4, pp. 351-382.
  • Van Stel, A.J., Carree, M.A. and Thurik, A.R. (2005), “The effect of entrepreneurial activity on national economic growth”, Small Business Economics, Vol. 24 No. 3, pp. 311-321.
  • Vila, L., Cabrer-Borras, B. and Pavia, J.M. (2015), “On the relationship between knowledge creation and economic performance”, Technological and Economic Development of Economy, Vol. 21 No. 4, pp. 539-556.
  • Wennekers, A.R.M. and Thurik, A.R. (1999), “Linking entrepreneurship and economic growth”, Small Business Economics, Vol. 13 No. 1, pp. 25-55.
  • World Bank (2015), “Doing business in Spain 2015”, Comparing business regulations for domestic firms in 17 autonomous communities, 2 autonomous cities and 5 ports with 188 other countries, Washington, DC.
Fuente de los datos: Dialnet