IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2007-059.html
   My bibliography  Save this paper

The Knowledge Spillover Theory of Entrepreneurship and Foreign Direct Investment

Author

Listed:
  • Zoltan J. Acs

    (George Mason University and Max-Planck-Institute of Economics, Jena)

  • David J. Brooksbank

    (University of Glamorgan)

  • Colm O'Gorman

    (Dublin City University)

  • David G. Pickernell

    (University of Glamorgan)

  • Siri Terjesen

    (Queensland University of Technology and Max-Planck-Institute of Economics, Jena)

Abstract

We explore if the Knowledge Spillover Theory of Entrepreneurship, applied to FDI, provides at least a partial explanation for the greater emergence of recent knowledge-based entrepreneurship in Ireland compared with Wales. In order to examine how FDI and entrepreneurship policy in these two regions might have influenced the levels of knowledge-based entrepreneurship, we outline FDI and entrepreneurship policies for Wales and Ireland and key measures of knowledge creation, and evaluate the extent and nature of FDI activity and its relationship with entrepreneurship in general and knowledge-based entrepreneurship in particular. Implications include possible policy directions for countries that are characterized by weak knowledge-creating institutions yet wish to encourage knowledge-based entrepreneurship.

Suggested Citation

  • Zoltan J. Acs & David J. Brooksbank & Colm O'Gorman & David G. Pickernell & Siri Terjesen, 2007. "The Knowledge Spillover Theory of Entrepreneurship and Foreign Direct Investment," Jena Economics Research Papers 2007-059, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2007-059
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2007/wp_2007_059.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zoltán J. Ács & Colm O'Gorman & László Szerb & Siri Terjesen, 2015. "Could the Irish Miracle be Repeated in Hungary?," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 30, pages 584-603, Edward Elgar Publishing.
    2. David Brooksbank & David Pickernell, 2001. "Changing the Name of the Game? RSA, Indigenous and Inward Investors and the National Assembly for Wales," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 271-277.
    3. Zoltan J. Acs & Attila Varga, 2008. "Entrepreneurship, Agglomeration and Technological Change," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 24, pages 341-352, Edward Elgar Publishing.
    4. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    5. O'Malley, Eoin, 2004. "Competitive Performance in Irish Industry," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2004(4-Winter), pages 66-101.
    6. Max Munday & Annette Roberts, 2001. "Assessing the Regional Transactions of Foreign Manufacturers in Wales: Issues and Determinants," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 92(2), pages 202-216, May.
    7. Holger Görg & Eric Strobl, 2016. "Multinational companies and indigenous development: An empirical analysis," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 17, pages 305-322, World Scientific Publishing Co. Pte. Ltd..
    8. 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.
    9. David J. Brooksbank & Nicholas C. Clifton & Dylan Jones-Evans & David G. Pickernell, 2001. "The End of the Beginning?: Welsh Regional Policy and Objective One," European Planning Studies, Taylor & Francis Journals, vol. 9(2), pages 255-274, March.
    10. Audretsch, David & Braunerhjelm, Pontus & Acs, Zoltán J & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers 4783, C.E.P.R. Discussion Papers.
    11. Driffield, Nigel & Taylor, Karl, 2000. "FDI and the Labour Market: A Review of the Evidence and Policy Implications," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 16(3), pages 90-103, Autumn.
    12. Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, September.
    13. Philip Cooke & Stephen Roper & Peter Wylie, 2003. ""The Golden Thread of Innovation' and Northern Ireland's Evolving Regional Innovation System," Regional Studies, Taylor & Francis Journals, vol. 37(4), pages 365-379.
    14. N. A. Phelps & Danny Mackinnon & Ian Stone & Paul Braidford, 2003. "Embedding the Multinationals? Institutions and the Development of Overseas Manufacturing Affiliates in Wales and North East England," Regional Studies, Taylor & Francis Journals, vol. 37(1), pages 27-40.
    15. K Morgan, 1991. "Competition and Collaboration in Electronics: What are the Prospects for Britain?," Environment and Planning A, , vol. 23(10), pages 1459-1482, October.
    16. Giorgio Barba Navaretti & Anthony J. Venables, 2006. "Multinational Firms in the World Economy," Economics Books, Princeton University Press, edition 1, volume 1, number 7832.
    17. Morck, Randall & Yeung, Bernard, 1992. "Internalization : An event study test," Journal of International Economics, Elsevier, vol. 33(1-2), pages 41-56, August.
    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. Paul Bishop, 2012. "Knowledge, diversity and entrepreneurship: a spatial analysis of new firm formation in Great Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(7-8), pages 641-660, September.
    2. Michael Anyadike-Danes & Mark Hart & Helena Lenihan, 2011. "New business formation in a rapidly growing economy: the Irish experience," Small Business Economics, Springer, vol. 36(4), pages 503-516, May.
    3. Pathak, Saurav & Xavier-Oliveira, Emanuel & Laplume, André O., 2013. "Influence of intellectual property, foreign investment, and technological adoption on technology entrepreneurship," Journal of Business Research, Elsevier, vol. 66(10), pages 2090-2101.
    4. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
    5. Rajeev K. Goel, 2018. "Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation," Small Business Economics, Springer, vol. 50(4), pages 887-897, April.
    6. Sierdjan Koster & Charlie Karlsson, 2010. "New Firm Formation and Economic Development in a Globalizing Economy," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship and Regional Development, chapter 3, Edward Elgar Publishing.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zoltan J. Acs & David J. Brooksbank & Colm O'Gorman; & David Pickernell & Siri Terjesen, 2012. "The knowledge spillover theory of entrepreneurship: an application to foreign direct investment," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 15(2), pages 237-261.
    2. Zoltán J. Ács & Colm O'Gorman & László Szerb & Siri Terjesen, 2015. "Could the Irish Miracle be Repeated in Hungary?," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 30, pages 584-603, Edward Elgar Publishing.
    3. Milo Bianchi & Magnus Henrekson, 2005. "Is Neoclassical Economics still Entrepreneurless?," Kyklos, Wiley Blackwell, vol. 58(3), pages 353-377, July.
    4. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    5. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth - past experience, current knowledge and policy implications," Working Paper Series in Economics and Institutions of Innovation 224, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Catherine Laffineur & Saulo Dubard Barbosa & Alain Fayolle & Emeran Nziali, 2017. "Active labor market programs’ effects on entrepreneurship and unemployment," Small Business Economics, Springer, vol. 49(4), pages 889-918, December.
    7. Minniti, Maria & Lévesque, Moren, 2008. "Recent developments in the economics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 603-612, November.
    8. Claudia Alvarez & David Urbano, 2008. "Entorno e Iniciativa Emprendedora: una Perspectiva Institucional," Working Papers 0807, Departament Empresa, Universitat Autònoma de Barcelona, revised Dec 2008.
    9. Thai, Mai Thi Thanh & Turkina, Ekaterina, 2014. "Macro-level determinants of formal entrepreneurship versus informal entrepreneurship," Journal of Business Venturing, Elsevier, vol. 29(4), pages 490-510.
    10. Jean P. Sepulveda & Claudio Bonilla, 2014. "Determinants of the Risk Attitude in Entrepreneurship: Evidence from Latin America," Past Working Papers 18, Universidad del Desarrollo, School of Business and Economics.
    11. Zhang, Ying & Duysters, Geert, 2010. "Entrepreneurship Development and the Role of Economic Transition in Entrepreneurial Activities in China," MERIT Working Papers 2010-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
    13. Marzieh Abolhassani & Seçil Hülya Danakol, 2019. "Wage and competition channels of foreign direct investment and new firm entry," Small Business Economics, Springer, vol. 53(4), pages 935-960, December.
    14. Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
    15. Boudreaux, Christopher J. & Nikolaev, Boris N. & Klein, Peter, 2019. "Socio-cognitive traits and entrepreneurship: The moderating role of economic institutions," Journal of Business Venturing, Elsevier, vol. 34(1), pages 178-196.
    16. Luis Medrano-Adán & Vicente Salas-Fumás & J. Sanchez-Asin, 2015. "Heterogeneous entrepreneurs from occupational choices in economies with minimum wages," Small Business Economics, Springer, vol. 44(3), pages 597-619, March.
    17. Nathalie Colombier & David Masclet, 2008. "Intergenerational correlation in self employment: some further evidence from French ECHP data," Small Business Economics, Springer, vol. 30(4), pages 423-437, April.
    18. Jones, Jonathan & Wren, Colin, 2008. "Re-investment and the survival of foreign-owned plants," LSE Research Online Documents on Economics 33138, London School of Economics and Political Science, LSE Library.
    19. Sander Wennekers & Roy Thurik & André Stel & Niels Noorderhaven, 2010. "Uncertainty Avoidance and the Rate of Business Ownership Across 21 OECD Countries, 1976–2004," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 271-299, Springer.
    20. Faria, João Ricardo & Cuestas, Juan Carlos & Mourelle, Estefanía, 2010. "Entrepreneurship and unemployment: A nonlinear bidirectional causality?," Economic Modelling, Elsevier, vol. 27(5), pages 1282-1291, September.

    More about this item

    Keywords

    Economic Development; Entrepreneurship; Foreign Direct Investment; Ireland; Knowledge Spillovers; Wales;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:jrp:jrpwrp:2007-059. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.