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The Continued Search for the Solow Residual: The Role of National Entrepreneurial Ecosystem

Author

Listed:
  • Acs, Zoltan J.

    (London School of Economics)

  • Estrin, Saul

    (London School of Economics)

  • Mickiewicz, Tomasz

    (Aston University)

  • Szerb, László

    (University of Pecs)

Abstract

This paper introduces a new concept in addition to the traditional measures of stocks of capital, labor, human capital and knowledge, to understand the Solow Residual: National Entrepreneurial Ecosystem (NEE). The NEE construct is based on a methodology that combines institutions and human agency into an interdependent system, applying the configuration theory. We argue that NEE affects the efficiency by which inputs are turned into outputs shifting the production function. We use data from a representative global survey and institutional sources to test the model for a cross section of 62 counties over the period 2006-2010 to test this proposition.

Suggested Citation

  • Acs, Zoltan J. & Estrin, Saul & Mickiewicz, Tomasz & Szerb, László, 2014. "The Continued Search for the Solow Residual: The Role of National Entrepreneurial Ecosystem," IZA Discussion Papers 8652, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8652
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    References listed on IDEAS

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    More about this item

    Keywords

    growth; entrepreneurship; ecosystem; Solow residual; GEM;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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