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Entrepreneurship, productivity and digitalization: Evidence from the EU

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  • Ghazy, Noha
  • Ghoneim, Hebatallah
  • Lang, Guenter

Abstract

This paper examines the relationship between entrepreneurship and productivity for the 27 EU member countries using panel data. Given the critical role that digitalization plays in the entrepreneurial ecosystem, the model was estimated using the Digital Economy and Society Index (DESI) and its subcomponents as instruments for entrepreneurship. The results show a significant positive relationship between entrepreneurship and productivity, as well as a positive relation between digitalization and entrepreneurship. Moreover, all components of the DESI index except for Human Capital also demonstrate a positive relationship with entrepreneurship. These results provide policymakers with a digital agenda to stimulate entrepreneurship as an engine of productivity and growth and shed light on the importance of empirically evaluating entrepreneurship in the light of digitalization.

Suggested Citation

  • Ghazy, Noha & Ghoneim, Hebatallah & Lang, Guenter, 2022. "Entrepreneurship, productivity and digitalization: Evidence from the EU," Technology in Society, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:teinso:v:70:y:2022:i:c:s0160791x22001932
    DOI: 10.1016/j.techsoc.2022.102052
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    More about this item

    Keywords

    Entrepreneurship; Productivity; Digitalization; DESI index; Panel data;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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