Entrepreneurship, Technological Innovation, and Economic Growth: Empirical Analysis of Panel Data

This article aims to develop elements of answers to the effect of adequate entrepreneurial activity that would have effects on economic growth. This work analyzes the relationship between entrepreneurship and economic growth for a panel of developing countries over the 2004-2011 periods. In this study, we used two measures of entrepreneurship: the new density and the potential of innovation. We estimated a growth function using the method of static and dynamic panel data. Our results show that the new density and growth are significantly and positively correlated. Our results also show that if the short-term impact of technological innovation on growth is negative, this effect is positive in the long term. This result confirms the theoretical predictions, namely the theory of spillage.