IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v51y2018i2d10.1007_s11187-018-0013-9.html
   My bibliography  Save this article

Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective

Author

Listed:
  • Zoltan J. Acs

    (George Mason University)

  • Saul Estrin

    () (London School of Economics)

  • Tomasz Mickiewicz

    (Aston University)

  • László Szerb

    (University of Pecs)

Abstract

Abstract We analyze conceptually and in an empirical counterpart the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, in combination in an ecosystem, can be viewed as a “missing link” in an aggregate production function analysis of cross-country differences in economic growth. To do this, we build on the concept of National Systems of Entrepreneurship (NSE) as resource allocation systems that combine institutions and human agency into an interdependent system of complementarities. We explore the empirical relevance of these ideas using data from a representative global survey and institutional sources for 46 countries over the period 2002–2011. We find support for the role of the entrepreneurial ecosystem in economic growth.

Suggested Citation

  • Zoltan J. Acs & Saul Estrin & Tomasz Mickiewicz & László Szerb, 2018. "Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective," Small Business Economics, Springer, vol. 51(2), pages 501-514, August.
  • Handle: RePEc:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0013-9
    DOI: 10.1007/s11187-018-0013-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-018-0013-9
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, February.
    3. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    4. Weitzman, Martin L, 1970. "Soviet Postwar Economic Growth and Capital-Labor Substitution," American Economic Review, American Economic Association, vol. 60(4), pages 676-692, September.
    5. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    6. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    7. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
    8. repec:kap:jtecht:v:42:y:2017:i:5:d:10.1007_s10961-016-9481-8 is not listed on IDEAS
    9. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
    10. Antonio Fatás & Ilian Mihov, 2013. "Policy Volatility, Institutions, and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 362-376, May.
    11. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
    12. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    13. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541 Edward Elgar Publishing.
    14. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
    15. Philippe Aghion, 2017. "Entrepreneurship and growth: lessons from an intellectual journey," Post-Print halshs-01599618, HAL.
    16. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    17. repec:spr:cliomt:v:12:y:2018:i:1:d:10.1007_s11698-016-0149-2 is not listed on IDEAS
    18. Roy Thurik, 2014. "Entrepreneurship and the business cycle," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-90, October.
    19. Aidis, Ruta & Estrin, Saul & Mickiewicz, Tomasz, 2008. "Institutions and entrepreneurship development in Russia: A comparative perspective," Journal of Business Venturing, Elsevier, vol. 23(6), pages 656-672, November.
    20. Zoltán J. Ács & Mark W. J. L. Sanders, 2015. "Knowledge spillover entrepreneurship in an endogenous growth model," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 10, pages 174-194 Edward Elgar Publishing.
    21. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    22. Jeffery McMullen & Lawrence Plummer & Zoltan Acs, 2007. "What is an Entrepreneurial Opportunity?," Small Business Economics, Springer, vol. 28(4), pages 273-283, April.
    23. repec:spr:spbrec:978-3-319-14932-5 is not listed on IDEAS
    24. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    25. Ofer, Gur, 1987. "Soviet Economic Growth: 1928-1985," Journal of Economic Literature, American Economic Association, vol. 25(4), pages 1767-1833, December.
    26. Zoltán J. Acs & David B. Audretsch & Erik E. Lehmann & Georg Licht, 2016. "National systems of entrepreneurship," Small Business Economics, Springer, vol. 46(4), pages 527-535, April.
    27. Baumol, William J., 1993. "Formal entrepreneurship theory in economics: Existence and bounds," Journal of Business Venturing, Elsevier, vol. 8(3), pages 197-210, May.
    28. Charles I. Jones & Paul M. Romer, 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 224-245, January.
    29. Enrico Casadio Tarabusi & Paolo Palazzi, 2004. "An index for sustainable development," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 57(229), pages 185-206.
    30. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-414, May.
    31. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    32. repec:afc:cliome:v:12:y:2018:i:1:p:61-97 is not listed on IDEAS
    33. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    34. repec:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9949-4 is not listed on IDEAS
    35. Enrico Casadio Tarabusi & Giulio Guarini, 2013. "An Unbalance Adjustment Method for Development Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(1), pages 19-45, May.
    36. Pontus Braunerhjelm & Zoltán J. Ács & David B. Audretsch & Bo Carlsson, 2015. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 6, pages 108-128 Edward Elgar Publishing.
    37. repec:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9948-5 is not listed on IDEAS
    38. repec:bla:stratm:v:7:y:1986:i:3:p:233-249 is not listed on IDEAS
    39. Stiglitz, Joseph E, 1989. "Markets, Market Failures, and Development," American Economic Review, American Economic Association, vol. 79(2), pages 197-203, May.
    40. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September.
    41. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9867-5 is not listed on IDEAS
    42. Philippe Aghion, 2017. "Entrepreneurship and growth: lessons from an intellectual journey," Small Business Economics, Springer, vol. 48(1), pages 9-24, January.
    43. Antonin Bergeaud & Gilbert Cette & Rémy Lecat, 2018. "The role of production factor quality and technology diffusion in twentieth-century productivity growth," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(1), pages 61-97, January.
    44. Esteban Lafuente & László Szerb & Zoltan J. Acs, 2016. "Country level efficiency and national systems of entrepreneurship: a data envelopment analysis approach," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1260-1283, December.
    45. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    46. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0012-x is not listed on IDEAS
    2. repec:ura:ecregj:v:1:y:2019:i:1:p:298-308 is not listed on IDEAS
    3. repec:ksa:szemle:1845 is not listed on IDEAS
    4. Claire Economidou & Luca Grilli & Magnus Henrekson & Mark Sanders, 2018. "Financial and Institutional Reforms for an Entrepreneurial Society," Small Business Economics, Springer, vol. 51(2), pages 279-291, August.
    5. Boudreaux, Christopher & Caudill, Steven, 2019. "Entrepreneurship, Institutions, and Economic Growth: Does the Level of Development Matter?," MPRA Paper 94244, University Library of Munich, Germany.
    6. repec:gam:jsusta:v:11:y:2019:i:10:p:2898-:d:233275 is not listed on IDEAS
    7. HONJO Yuji & NAKAMURA Hiroki, 2019. "The Link between Entrepreneurial Activities and Angel Investment: An international comparison," Discussion papers 19017, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Economic growth; Entrepreneurship; Ecosystem; Efficiency; Technology; Solow residual; GEM; GEI;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:51:y:2018:i:2:d:10.1007_s11187-018-0013-9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Mallaigh Nolan). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.