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The Role of National Innovation Systems in Entrepreneurship Activities at Baltic State Countries

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  • Ibrahim Alnafrah

    (ITMO University
    Damascus University)

  • Sulaiman Mouselli

    (Damascus University
    Arab International University)

Abstract

This study explores the components of national innovation system (NIS) that most contribute to the creation of new enterprises in Baltic state countries for the period from 2005 to 2014. We run ordinary least squares (OLS) regressions for a set of variables that represents four components of NISs, extracted from principal component analysis (PCA), on the number of new enterprises as a dependant variable. We find that infrastructure and economic factors are the most influential components of the NISs in explaining changes in the number of new enterprises in the Baltic state countries. However, regulation factor is insignificant in explaining the dependent variable in Estonia and Lithuania. Moreover, the innovation factor in Latvia does not explain the variation in the number of new enterprises. Hence, it is pivotal for Estonia and Lithuania to improve the institutional and regulation structures in order to increase the number of new enterprises while Latvia needs to encourage innovative activities to capitalize on its industrial competitive advantage.

Suggested Citation

  • Ibrahim Alnafrah & Sulaiman Mouselli, 2020. "The Role of National Innovation Systems in Entrepreneurship Activities at Baltic State Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(1), pages 84-102, March.
    • Handle: RePEc:spr:jknowl:v:11:y:2020:i:1:d:10.1007_s13132-018-0537-x
    DOI: 10.1007/s13132-018-0537-x
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