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The knowledge spillover theory of entrepreneurship: the developing country context

Author

Listed:
  • Muhammad Naveed Iftikhar

    (University of Delaware)

  • Maha Ahmad

    (National University of Science and Technology)

  • David B. Audretsch

    (Indiana University)

Abstract

This is among the few studies to test the Knowledge Spillover Theory of Entrepreneurship (KSTE) at the city level in a developing country i.e. Pakistan. KSTE is in its empirical infancy; while the theory has been lauded for its advancement of microeconomic foundations in endogenous growth theory, there is scant literature on just how well KSTE holds when tested empirically outside the developed world. This study uses a novel dataset to measure knowledge stock and spillovers in ten major cities across Pakistan to answer the question: What is the role of knowledge spillover in the creation of business firms in cities of a developing country? The study provides valuable insights into the factors that lead to higher levels of firm creation through panel data analysis of ten cities of Pakistan during 2002–2014, and also contributes to captivating the global appeal for KSTE by testing the theory empirically in a developing country.

Suggested Citation

  • Muhammad Naveed Iftikhar & Maha Ahmad & David B. Audretsch, 2020. "The knowledge spillover theory of entrepreneurship: the developing country context," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1327-1346, December.
    • Handle: RePEc:spr:intemj:v:16:y:2020:i:4:d:10.1007_s11365-020-00667-w
    DOI: 10.1007/s11365-020-00667-w
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    Cited by:

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    2. Lattacher, Wolfgang & Gregori, Patrick & Holzmann, Patrick & Schwarz, Erich J., 2021. "Knowledge spillover in entrepreneurial emergence: A learning perspective," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    3. Ronja Kirschning & Matthias Mrożewski, 2023. "The role of entrepreneurial absorptive capacity for knowledge spillover entrepreneurship," Small Business Economics, Springer, vol. 60(1), pages 105-120, January.
    4. Muhammad Naveed Iftikhar & Jonathan B. Justice & David B. Audretsch, 2022. "The knowledge spillover theory of entrepreneurship: an Asian perspective," Small Business Economics, Springer, vol. 59(4), pages 1401-1426, December.
    5. Fandi Yang & Peng Yuan & Gongxiong Jiang, 2022. "Knowledge Spillovers, Institutional Environment, and Entrepreneurship: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-27, November.
    6. Alessandra Colombelli & Emilio Paolucci & Elisabetta Raguseo & Gianluca Elia, 2023. "The creation of digital innovative start-ups: the role of digital knowledge spillovers and digital skill endowment," Post-Print hal-04138894, HAL.
    7. Angela Stefania Bergantino & Claudia Capozza & Ada Spiru, 2023. "Transport endowment, knowledge spillovers and firm performance in emerging economies," Small Business Economics, Springer, vol. 61(4), pages 1515-1541, December.

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