Linking entrepreneurship, innovation and economic growth: evidence from GEM countries

Abstract

Using a simple least squares regression model though analysis of cross-sectional data of the 65 world economies participating in global entrepreneurship monitor (GEM) 2016, this paper explores the role of entrepreneurship, technological innovation, entrepreneurship finance and physical infrastructure as indicators of economic growth. It was empirically found that total entrepreneurial activity (TEA), technological innovation, entrepreneurial finance and physical infrastructure are statistically significant and positively correlated with the economic growth rate of the selected GEM countries in 2016.