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Entrepreneurship capital and technical efficiency : the role of new business / firms as a conduit of knowledge spillovers

Author

Listed:
  • Laborda, Leopoldo
  • Guasch, Jose Luis
  • Sotelsek, Daniel

Abstract

Increasingly, entrepreneurship is being discussed and considered as a source of high economic growth and competitiveness. A conceptual process of creative construction that characterizes the dynamics between entrants and incumbents can prove quite useful to analyze the impact of countries'entrepreneurship capital on economic performance and can be a guide for economic policy. This paper applies a Stochastic Frontier Analysis approach to test the hypothesis that entrepreneurship capital promotes economic performance by serving as a conduit of knowledge spillovers. In addition, kernel density functions are employed to analyze convergence (or divergence) in the efficiency estimated for individual countries. The empirical evidence and results here tend to support the hypothesis. Specifically, the empirical analysis shows that the rate of expenditure on research and development in relation to new businesses registered has a positive and significant effect in increasing technical efficiency. These factors facilitate the dissemination of existing knowledge, develop entrepreneurship capital, and thus provide the missing link to economic performance -- entrepreneurship capital. The authors also show the trends and dynamics of changes in countries’ technical efficiency.

Suggested Citation

  • Laborda, Leopoldo & Guasch, Jose Luis & Sotelsek, Daniel, 2011. "Entrepreneurship capital and technical efficiency : the role of new business / firms as a conduit of knowledge spillovers," Policy Research Working Paper Series 5739, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5739
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    References listed on IDEAS

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    Cited by:

    1. José Luis Massón-Guerra & Pedro Ortín-Ángel, 2017. "Regional entrepreneurship capital and firm production," Small Business Economics, Springer, vol. 49(3), pages 595-607, October.
    2. Soumodip Sarkar, 2017. "Uncorking knowledge- purposeful spillovers as a strategic tool for capability enhancement in the cork industry," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 251-275, March.
    3. Massón-Guerra, José Luis & Ortín-Angel, Pedro, 2014. "Entrepreneurship Capital and Regional Productivity Revisited," MPRA Paper 57470, University Library of Munich, Germany.
    4. José Luis Massón-Guerra & Pedro Ortín-Ángel, 2019. "Entrepreneurship capital spillovers at the local level," Small Business Economics, Springer, vol. 52(1), pages 175-191, January.
    5. Silveli Cristo-Andrade & João J. Ferreira, 2020. "Knowledge spillovers and strategic entrepreneurship: what researches and approaches?," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 263-286, March.

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    Keywords

    Economic Theory&Research; Agricultural Knowledge&Information Systems; Labor Policies; E-Business; Knowledge for Development;
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