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Entrepreneurship, Innovation and Economic Growth:The Case of Yangtze River Delta in China

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  • Zheng, Jianghuai
  • Hu, Zhining
  • Wang, Jialing
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    Abstract

    This paper firstly discusses why the economic growth in the Yangtze River Delta has been slowed down recently and suggests a need totransform the current input-based economic growth pattern into aninnovation-based one. Next, through our theoretical analysis, we find that the change of current economic growth pattern is just the innovative reallocationof production factors, and the new economic growth driven by innovation is mainly initiated by the transmutation of entrepreneurship. Finally, we test our belief with real-world evidence. It shows that the Delta has formed a mechanism in which entrepreneurship and human capital mutually promote each other. However, the interactive relationship between R&D expenditure and entrepreneurship has not been developed in general. In addition, excessive government interventions will do harm to the growth of entrepreneurs and economic development.

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    File URL: http://mpra.ub.uni-muenchen.de/8919/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8919.

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    Date of creation: 07 Jan 2008
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    Handle: RePEc:pra:mprapa:8919

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    Keywords: entrepreneurship; innovation and economic growth pattern;

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    1. Rachel Griffith & Stephen Redding & John Van Reenen, 2000. "Mapping the two faces of R&D: productivity growth in a panel of OECD industries," IFS Working Papers W00/02, Institute for Fiscal Studies.
    2. Rasmus Lentz & Dale T. Mortensen, 2005. "Productivity Growth And Worker Reallocation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 731-749, 08.
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