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Investigating the Mediating Role of Innovation between Entrepreneurship and Regional Economic Development

Year 2018, Volume: 7 Issue: 2, 1 - 32, 01.12.2018

İsmail Demirdağ

Abstract

Purpose: This study aims to show how innovation plays as a mediator in the link between entrepreneurship and economic development level. Methodology: Using data of 26 NUTS II regions of Turkey and mediation analysis technique, the study has examined the associations among the variables for four periods: 1995, 2000, 2005, and 2010. Findings: The results, supporting the mainstream arguments in the literature and the main hypothesis, illustrate that the interaction between entrepreneurship and innovation has a positive and significant effect on the level of regional economic development. Practical Implications: The results of this paper provide ample evidence indicating that entrepreneurship has a crucial impact on the economic development level of NUTS-II regions of Turkey through the innovation. Originality: By providing empirical evidence, this study shows that the interaction between entrepreneurship and innovation has play a critical role in determining the level of economic development of the regions in Turkey.

Keywords

Regional Economic Development Level Entrepreneurship Innovation

References

  • Acs, Z.J., Catherine Armington (2004), “Employment Growth and Entrepreneurial Activity in Cities”, Regional Studies 38 (8), 911-927.
  • Acs, Z. J., Laszlo Szerb (2007), “Entrepreneurship, economic growth and public policy”, Small Business Economics, 28(2–3), 109–122.
  • Acs, Z. J., David B. Audretsch, Pontus Braunerhjelm, Bo Carlson (2004), “The missing link the knowledge filter and entrepreneurship in endogenous growth”, Working paper 4783. London: Center for Economic Policy Research.
  • Acs, Z.J. (2006) “How is entrepreneurship good for economic growth?”, Innovations, 1 (1),97–107.
  • Aghion, Philippe and Peter Howitt (1997), Endogeneous Growth Theory. MIT Press: Cambridge, MA.
  • Audretsch, D.B., Max Keilbach (2004), “Entrepreneurship capital and economic performance”, Regional Studies, 38, 949–959.
  • Audretsch, D.B., Max Keilbach (2007), “The localisation of entrepreneurship capital: Evidence from Germany”, Papers in Regional Science 86: 351–365.
  • Audretsch, D.B., Max Keilbach (2008), “Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth”, Research Policy 37(10):1697- 1705.
  • Audretsch, D.B., Roy Thurik (2004), “A Model of the Entrepreneurial Economy”, International Journal of Entrepreneurship Education 2(2): 143-166.
  • Audretsch, D.B., Roy Thurik (2001), “Linking Entrepreneurship to Growth”, OECD Science, Technology and Industry Working Papers, 2001/2.
  • Audretsch, David B., Max Keilbach, and Erik E.Lehmann (2006), Entrepreneurship and economic growth. New York, Oxford: Oxford University Press.
  • Aydalot, Philippe (ed.) (1986), Milieux innovateurs en Europe, Paris: GREMI.
  • Baptista, R., Vitor Escaria, Paulo Madruga (2008), “Entrepreneurship, regional development and job creation: The case of Portugal”, Small Business Economics, 30(1), 49–58.
  • Baumol, W.J. (1990), “Entrepreneurship: Productive, unproductive and destructive”, Journal of Political Economy, 98(5), pp. 893-921.
  • Braunerhjelm, P., Zoltan J., David Audretsch, Bo Carlsson (2010), “The missing link: knowledge diffusion and entrepreneurship in endogenous growth”, Small Business Economics, 34: 105–125.
  • Camp, M. (2005), “The Innovation-Entrepreneurship NEXUS: A National Assessment of Entrepreneurship and Regional Economic Growth and Development”, Advanced Research Technologies, LLC Powell, OH.
  • Cooke, Philip and Kevin Morgan (1998), The associational economy. Firms, regions, and innovation, Oxford: Oxford University Press.
  • Drucker, P.F. (1998), “The discipline of innovation”, Harvard Business Review, 76(6), 149–157.
  • Galindo, M.A., Maria Teresa Méndez (2014), “Entrepreneurship, economic growth, and innovation: Are feedback effects at work?”, Journal of Business Research, 67: 825– 829.
  • González, J. L., Iñaki Peña-Legazkue, Ferran Vendrell-Herrero (2012), “Innovation, Entrepreneurial Activity and Competitiveness at a Sub-national Level”, Small Business Economics, 39:3, 561-574.
  • Grossman, G. M., Elhanan Helpman (1991), Innovation and Growth in the Global Economy, Cambridge: MIT Pres.
  • Guerrero, M., Iñaki Peña-Legazkue, (2013), “Entrepreneurial activity and regional development: an introduction to this special issue”, Investigaciones Regionales, 26 – Pages 5 to 15
  • Hayes, A. F. (2013), Introduction to mediation, moderation, and conditional process analysis. A regression-based approach. New York, NY: The Guilford Press
  • Keilbach, M., Jagannadha Pawan Tamvada, David B. Audretsch (ed.) (2009), Sustaining Entrepreneurship and Economic Growth, Springer, USA
  • Kirzner, I. M. (1979). Perception, opportunity and profit. Chicago: University of Chicago Press.
  • Knight, F. H. (1942), “Profit and Entrepreneurial Functions.” Journal of Economic History 2 (December): 126–132.
  • Lucas, R.E. (1988), “On the mechanics of economic development”, Journal of Monetary Economics 22, 3–42.
  • Maillat, D., B. Lecoq (1992), “New Technologies and Transformation of Regional Structures in Europe: The Role of the Milieu”, Entrepreneurship and Regional Development 4:1-20.
  • OECD (2017), Science, Technology and R&D Statistics (database). Science and Technology Main Indicators. [Accessed: June 2017].
  • OECD (2005), Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, Third Edition
  • Piore, M. J., Charles F. Sabel (1984), The Second Industrial Divide, Basic Books, New York.
  • Plummer, P., Mike Taylor (2001), “Theories of Local Economic Growth (part 1): Concepts Models and Measurements”, Environment and Planning A, 33, p.219-236.
  • Preacher, K. J., Andrew F. Hayes (2004), “SPSS and SAS procedures for estimating indirect effects in simple mediation models”. Behavior Research Methods, Instruments, & Computers, 36, 717-731.
  • Preacher, K. J., Andrew F. Hayes (2008), “Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models”, Behavior Research Methods 2008, 40 (3), 879-891.
  • Romer, P.M. (1986), “Increasing returns and long-run growth”, Journal of Political Economy 94 (5), 1001–1037.
  • Romer, P.M. (1990), “Endogenous technological change”, Journal of Political Economy 98 (5), S71–S102.
  • Rucker, D.D., Kristopher J. Preacher, Zakary L. Tormala, Richard E. Petty (2011), “Mediation Analysis in Social Psychology: Current Practices and New Recommendations”, Social and Personality Psychology Compass 5/6 (2011): 359–371.
  • Schumpeter, Joseph A. (1912), Theorie der wirtschaftlichen Entwicklung. Dunker & Humblot, Leipzig. The Theory of Economic Development. R. Opie. Cambridge, MA: Harvard University Press
  • Schumpeter, Joseph A. (1934), The Theory of Economic Development. Massachusetts: Harvard University Press.
  • Schumpeter, Joseph A. (1939), Business Cycless I-II. New York: McGraw-Hill Schumpeter, Joseph A. (1942), Capitalism, Socialism, and Democracy. New York: Harper and Bros.
  • S´ ledzik, K. (2013), Schumpeter’s view on innovation and entrepreneurship (in:) Management Trends in Theory and Practice, (ed.) Stefan Hittmar, Faculty of Management Science and Informatics, University of Zilina & Institute of Management by University of Zilina
  • Solow, R.M. (1956), “A contribution to the theory of economic growth”, Quarterly Journal of Economics, 70, 65-94.
  • Stam, E. (2008), “Entrepreneurship and Innovation Policy”, Papers in Evolutionary Economic Geography (PEEG) 0807, Utrecht University.
  • Svensson, P. (2010), The Dynamics of Innovation and Knowledge-Based Regional Development, Linköping Studies in Science and Technology Dissertations, No. 1356
  • Szirmai, A., Wim Naudé, Micheline Goedhuys (2011), Entrepreneurship, Innovation, and Economic Development, Oxford.
  • Tabachnick, B. G., Linda S. Fidell (1996), Using multivariate statistics (3rd ed.). New York: HarperCollins.
  • TOBB, (2014), http://www.tobb.org.tr/BilgiErisimMudurlugu/Sayfalar/ KurulanKapananSirketistatistikleri.php [Accessed: November 2014].
  • Turkish Patent Institute (2014), http://www.turkpatent.gov.tr/dosyalar/istatistik/ [Accessed: November 2014].
  • Turkstat (2014), http://www.tuik.gov.tr/VeriTabanlari.do, [Accessed: November 2014].
  • van Hemert, P., Peter Nijkamp (2014), “Critical Success Factors for a Knowledge-Based Economy: An Empirical Study into Background Factors of Economic Dynamism (in:) Innovation, Growth and Competitiveness, (ed.) Nijkamp, P. and Iulia Siedschlag, Springer.
  • van Stel, A., Kashifa Suddle (2008), “The Impact of New Firm Formation on Regional Development in the Netherlands”, Small Business Economics, 30, 31-47.
  • van Stel, A., Martin Carree, Roy Thurik (2005), “The effect of entrepreneurial activity on national economic growth”, Small Business Economics, 24(3), 311–321.
  • Wennekers, S., Roy Thurik (1999), “Linking entrepreneurship and economic growth”, Small Business Economics, 13 (1), 27–56.
  • Wong, P.K., Yuen Ping Ho, Erkko Autio (2005), “Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data”, Small Business Economics, 24: 335–350

Girişimcilik ve Bölgesel Ekonomik Kalkınma Arasındaki İlişkide Yeniliğin Aracı Rolünün İncelenmesi

Year 2018, Volume: 7 Issue: 2, 1 - 32, 01.12.2018

İsmail Demirdağ

Abstract

Amaç: Bu çalışma, girişimcilik ve ekonomik kalkınma düzeyi arasındaki ilişkide yeniliğin nasıl bir aracı rol oynadığını ortaya koymaya çalışmaktadır. Yöntem: Çalışma, Türkiye’deki 26 İBBS Düzey 2 bölge verilerini ve aracılık analizi tekniğini kullanarak, değişkenler arasındaki ilişkiyi dört dönem için incelemiştir: 1995, 2000, 2005 ve 2010. Bulgular: Literatürdeki temel tartışmaları ve ana hipotezi destekleyen sonuçlar, girişimcilik ve yenilik arasındaki etkileşimin, bölgesel ekonomik kalkınma düzeyi üzerinde pozitif ve anlamlı etkiye sahip olduğunu göstermektedir. Sonuç ve Öneriler: Bu çalışmanın sonuçları yeterli kanıt sağlayarak, girişimciliğin, yenilik yoluyla Türkiye’nin İBBS Düzey-2 bölgelerinin ekonomik kalkınma düzeyleri üzerinde önemli bir etkiye sahip olduğunu göstermektedir. Özgün Değer: Ampirik kanıtlar sağlayarak, bu çalışma, girişimcilik ve yenilik arasındaki etkileşimin, Türkiye’deki bölgelerin ekonomik kalkınma düzeyinin belirlenmesinde kritik bir rol oynadığını göstermiştir.

Keywords

Bölgesel Ekonomik Kalkınma Düzeyi Girişimcilik Yenilikçilik

References

  • Acs, Z.J., Catherine Armington (2004), “Employment Growth and Entrepreneurial Activity in Cities”, Regional Studies 38 (8), 911-927.
  • Acs, Z. J., Laszlo Szerb (2007), “Entrepreneurship, economic growth and public policy”, Small Business Economics, 28(2–3), 109–122.
  • Acs, Z. J., David B. Audretsch, Pontus Braunerhjelm, Bo Carlson (2004), “The missing link the knowledge filter and entrepreneurship in endogenous growth”, Working paper 4783. London: Center for Economic Policy Research.
  • Acs, Z.J. (2006) “How is entrepreneurship good for economic growth?”, Innovations, 1 (1),97–107.
  • Aghion, Philippe and Peter Howitt (1997), Endogeneous Growth Theory. MIT Press: Cambridge, MA.
  • Audretsch, D.B., Max Keilbach (2004), “Entrepreneurship capital and economic performance”, Regional Studies, 38, 949–959.
  • Audretsch, D.B., Max Keilbach (2007), “The localisation of entrepreneurship capital: Evidence from Germany”, Papers in Regional Science 86: 351–365.
  • Audretsch, D.B., Max Keilbach (2008), “Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth”, Research Policy 37(10):1697- 1705.
  • Audretsch, D.B., Roy Thurik (2004), “A Model of the Entrepreneurial Economy”, International Journal of Entrepreneurship Education 2(2): 143-166.
  • Audretsch, D.B., Roy Thurik (2001), “Linking Entrepreneurship to Growth”, OECD Science, Technology and Industry Working Papers, 2001/2.
  • Audretsch, David B., Max Keilbach, and Erik E.Lehmann (2006), Entrepreneurship and economic growth. New York, Oxford: Oxford University Press.
  • Aydalot, Philippe (ed.) (1986), Milieux innovateurs en Europe, Paris: GREMI.
  • Baptista, R., Vitor Escaria, Paulo Madruga (2008), “Entrepreneurship, regional development and job creation: The case of Portugal”, Small Business Economics, 30(1), 49–58.
  • Baumol, W.J. (1990), “Entrepreneurship: Productive, unproductive and destructive”, Journal of Political Economy, 98(5), pp. 893-921.
  • Braunerhjelm, P., Zoltan J., David Audretsch, Bo Carlsson (2010), “The missing link: knowledge diffusion and entrepreneurship in endogenous growth”, Small Business Economics, 34: 105–125.
  • Camp, M. (2005), “The Innovation-Entrepreneurship NEXUS: A National Assessment of Entrepreneurship and Regional Economic Growth and Development”, Advanced Research Technologies, LLC Powell, OH.
  • Cooke, Philip and Kevin Morgan (1998), The associational economy. Firms, regions, and innovation, Oxford: Oxford University Press.
  • Drucker, P.F. (1998), “The discipline of innovation”, Harvard Business Review, 76(6), 149–157.
  • Galindo, M.A., Maria Teresa Méndez (2014), “Entrepreneurship, economic growth, and innovation: Are feedback effects at work?”, Journal of Business Research, 67: 825– 829.
  • González, J. L., Iñaki Peña-Legazkue, Ferran Vendrell-Herrero (2012), “Innovation, Entrepreneurial Activity and Competitiveness at a Sub-national Level”, Small Business Economics, 39:3, 561-574.
  • Grossman, G. M., Elhanan Helpman (1991), Innovation and Growth in the Global Economy, Cambridge: MIT Pres.
  • Guerrero, M., Iñaki Peña-Legazkue, (2013), “Entrepreneurial activity and regional development: an introduction to this special issue”, Investigaciones Regionales, 26 – Pages 5 to 15
  • Hayes, A. F. (2013), Introduction to mediation, moderation, and conditional process analysis. A regression-based approach. New York, NY: The Guilford Press
  • Keilbach, M., Jagannadha Pawan Tamvada, David B. Audretsch (ed.) (2009), Sustaining Entrepreneurship and Economic Growth, Springer, USA
  • Kirzner, I. M. (1979). Perception, opportunity and profit. Chicago: University of Chicago Press.
  • Knight, F. H. (1942), “Profit and Entrepreneurial Functions.” Journal of Economic History 2 (December): 126–132.
  • Lucas, R.E. (1988), “On the mechanics of economic development”, Journal of Monetary Economics 22, 3–42.
  • Maillat, D., B. Lecoq (1992), “New Technologies and Transformation of Regional Structures in Europe: The Role of the Milieu”, Entrepreneurship and Regional Development 4:1-20.
  • OECD (2017), Science, Technology and R&D Statistics (database). Science and Technology Main Indicators. [Accessed: June 2017].
  • OECD (2005), Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, Third Edition
  • Piore, M. J., Charles F. Sabel (1984), The Second Industrial Divide, Basic Books, New York.
  • Plummer, P., Mike Taylor (2001), “Theories of Local Economic Growth (part 1): Concepts Models and Measurements”, Environment and Planning A, 33, p.219-236.
  • Preacher, K. J., Andrew F. Hayes (2004), “SPSS and SAS procedures for estimating indirect effects in simple mediation models”. Behavior Research Methods, Instruments, & Computers, 36, 717-731.
  • Preacher, K. J., Andrew F. Hayes (2008), “Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models”, Behavior Research Methods 2008, 40 (3), 879-891.
  • Romer, P.M. (1986), “Increasing returns and long-run growth”, Journal of Political Economy 94 (5), 1001–1037.
  • Romer, P.M. (1990), “Endogenous technological change”, Journal of Political Economy 98 (5), S71–S102.
  • Rucker, D.D., Kristopher J. Preacher, Zakary L. Tormala, Richard E. Petty (2011), “Mediation Analysis in Social Psychology: Current Practices and New Recommendations”, Social and Personality Psychology Compass 5/6 (2011): 359–371.
  • Schumpeter, Joseph A. (1912), Theorie der wirtschaftlichen Entwicklung. Dunker & Humblot, Leipzig. The Theory of Economic Development. R. Opie. Cambridge, MA: Harvard University Press
  • Schumpeter, Joseph A. (1934), The Theory of Economic Development. Massachusetts: Harvard University Press.
  • Schumpeter, Joseph A. (1939), Business Cycless I-II. New York: McGraw-Hill Schumpeter, Joseph A. (1942), Capitalism, Socialism, and Democracy. New York: Harper and Bros.
  • S´ ledzik, K. (2013), Schumpeter’s view on innovation and entrepreneurship (in:) Management Trends in Theory and Practice, (ed.) Stefan Hittmar, Faculty of Management Science and Informatics, University of Zilina & Institute of Management by University of Zilina
  • Solow, R.M. (1956), “A contribution to the theory of economic growth”, Quarterly Journal of Economics, 70, 65-94.
  • Stam, E. (2008), “Entrepreneurship and Innovation Policy”, Papers in Evolutionary Economic Geography (PEEG) 0807, Utrecht University.
  • Svensson, P. (2010), The Dynamics of Innovation and Knowledge-Based Regional Development, Linköping Studies in Science and Technology Dissertations, No. 1356
  • Szirmai, A., Wim Naudé, Micheline Goedhuys (2011), Entrepreneurship, Innovation, and Economic Development, Oxford.
  • Tabachnick, B. G., Linda S. Fidell (1996), Using multivariate statistics (3rd ed.). New York: HarperCollins.
  • TOBB, (2014), http://www.tobb.org.tr/BilgiErisimMudurlugu/Sayfalar/ KurulanKapananSirketistatistikleri.php [Accessed: November 2014].
  • Turkish Patent Institute (2014), http://www.turkpatent.gov.tr/dosyalar/istatistik/ [Accessed: November 2014].
  • Turkstat (2014), http://www.tuik.gov.tr/VeriTabanlari.do, [Accessed: November 2014].
  • van Hemert, P., Peter Nijkamp (2014), “Critical Success Factors for a Knowledge-Based Economy: An Empirical Study into Background Factors of Economic Dynamism (in:) Innovation, Growth and Competitiveness, (ed.) Nijkamp, P. and Iulia Siedschlag, Springer.
  • van Stel, A., Kashifa Suddle (2008), “The Impact of New Firm Formation on Regional Development in the Netherlands”, Small Business Economics, 30, 31-47.
  • van Stel, A., Martin Carree, Roy Thurik (2005), “The effect of entrepreneurial activity on national economic growth”, Small Business Economics, 24(3), 311–321.
  • Wennekers, S., Roy Thurik (1999), “Linking entrepreneurship and economic growth”, Small Business Economics, 13 (1), 27–56.
  • Wong, P.K., Yuen Ping Ho, Erkko Autio (2005), “Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data”, Small Business Economics, 24: 335–350
There are 54 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

İsmail Demirdağ

Publication Date December 1, 2018
Published in Issue Year 2018 Volume: 7 Issue: 2

Cite

APA Demirdağ, İ. (2018). Investigating the Mediating Role of Innovation between Entrepreneurship and Regional Economic Development. Journal of Entrepreneurship and Innovation Management, 7(2), 1-32.