The Relationship between Entrepreneurship and Innovation: A Dynamic Panel Data Analysis

Abstract

Entrepreneurship and innovation are two of the most pervasive concepts of our times. Innovation and entrepreneurship have been one of the factors that provide developing countries to reach higher development stages as well as developed countries and to perform economic and social transformations and will continue. In this study, the relationship between innovation and entrepreneurship were examined for OECD countries for the period of 1990-2011 using dynamic panel data models. Results showed that the innovation and entrepreneurship have a long-term relationship, whereas in the short term there was no such indication. Accordingly, 1% increase in business ownership rate would increase the private sector R&D expenditures by 5.9%. Analysis results also showed that; the coefficients of error correction parameters of Belgium, Canada, Czech Republic, Finland, France, Germany, Ireland, Italy, South Korea, Mexico, Poland, Slovakia, the Netherlands, the United Kingdom and the United States were meaningful and revealed a long term relationship in these countries.

Keywords

• Entrepreneurship,Innovation,Dynamic Panel Data Analysis

Girişimcilik ve İnovasyon Arasındaki İlişki: Bir Dinamik Panel Veri Analizi

Abstract

Girişimcilik ve inovasyon çağımızın popüler kavramları arasındadır. İnovasyon ve girişimcilik, firmaların ve dolaylı olarak ülkelerin ekonomik ve sosyal dönüşümleri gerçekleştirmelerini ve rekabet avantajı elde etmelerini sağlayan faktörler arasında yer almaktadır. Bu çalışmada girişimcilik ve inovasyon arasındaki ilişki OECD ülkeleri özelinde 1990-2011 dönemi için dinamik panel veri yöntemi kullanılarak analiz edilmiştir. Sonuçlar, girişimcilik ile inovasyon arasında uzun dönemli bir ilişkinin olduğunu, buna karşın kısa dönemde bir ilişki olmadığını göstermektedir. Elde edilen bulgular, uzun dönemde işletme sahipliği oranındaki %1’lik artışın özel sektör Ar-Ge harcamalarını yaklaşık olarak %5.9 oranında artıracağına işaret etmektedir. Analiz sonuçları ayrıca; Belçika, Kanada, Çek Cumhuriyeti, Finlandiya, Fransa, Almanya, İrlanda, İtalya, Meksika, Polonya, Slovakya, Hollanda, İngiltere ve ABD’nin hata düzeltme parametrelerine ait katsayıların anlamlı göstermekte, dolayısıyla bu ülkelerde girişimcilik ile inovasyon arasında uzun dönemli bir ilişki olduğunu ortaya koymaktadır.

Keywords

• Girişimcilik,İnovasyon,Dinamik Panel Veri Analizi,Dinamik Panel Veri Analizi

References

1. Bai, J., & Ng, S., (2004). A PANIC Attack on Unit Roots and Cointegration. Econometrica, 1127-1177.
2. Beyer, M., Czarnitzki, D., & Kraft, K. (2011). Managerial Ownership, Entrenchment and Innovation. Economics of Innovation and New Technology, 21(7), 679-699.
3. Brazeal, D. V., & Herbert, T., T., (1999). The Genesis of Entrepreneurship. Entrepreneurship Theory and Practice, 23, 29-46.
4. Breusch, T. S., & Pagan, A. R. (1980). The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics. The Review of Economic Studies, 239-253.
5. Bygrave, W. D. (2004). The Entrepreneurial Process. In W. D. Bygrave & A. Zacharakis (Eds.). The portable MBA in entrepreneurship. Hoboken, NJ: John Wiley & Sons.
6. Choi, I., (2002), Instrumental Variables Estimation of a Nearly Nonstationary, Heterogeneous Error Component Model. Journal of Econometrics 109: 1–32.
7. Demircan, K., (2006), The Role of R&D and Innovation In Us Economy as a Benchmark For Turkish Economy, http://www.ekonomi.gov.tr/upload/BF09AE98-D8D3-8566-4520B0D124E5614D/Koray_Demircan.pdf Access Date: 07.03.2014.
8. Hassim, A., A., Nizam, A., Talib, A., and Bakar, A. R., A., (2011), The Effects of Entrepreneurial Orientation on Firm Organisational Innovation and Market Orientation Towards Firm Business Performance, 2011 International Conference on Sociality and Economics Development IPEDR vol.10, IACSIT Press, Singapore.

9. Hill, Charles W. L., (2005), International Business: Competing in the Global Marketplace, McGraw Hill: Boston.
10. Honjo, Y., (2013), Why is the Rate of Entrepreneurship So Low in Japan?, http://www.rieti.go.jp/jp/events/13012101/pdf/honjo.pdf Access Date: 08.12.2014.
11. Technology and Economic Growth on Entrepreneurship, American International Journal of Contemporary Research, 1(1), 45-51.
12. Klerk, D., and Kruger, S., (2003), Entrepreneurship: Towards a New Definition, http://sbaer.uca.edu/research/icsb/2003/188.doc Access Date: 07.01.2014.
13. Link, A., N., (2007), Entrepreneurship, Innovation, and Technological Change, the Center for Applied Economics, Technical Report, 07-0716.
14. Madhoushi, M., Sadati, A., Delavari, H., Mehdivand, M., and Mihandost, R., (2011), Entrepreneurial Orientation and Innovation Performance: The Mediating Role of Knowledge Management, Asian Journal of Business Management 3(4): 310-316.
15. Margaret, M., (2008), The Role of Human Capital and Entrepreneurial Orientation on Radical Product Innovations in Small Scale Carpentry Workshops in Nairobi, http://www.africa-platform.org/sites/default/files/resources/kenya_role_of_human_capital_and_entrepreneurial_orientation_onproduct_innovations_in_carpentry_workshops.pdf Access Date: 07.11.2014.
16. McFadzean, E., O'Loughlin, A., Tang E., (2005), Corporate Entrepreneurship and Innovation Part 1: the Missing Link, European Journal of Innovation Management, 8(3), 350-372.
17. Moon, H., R., Perron B., (2003). Testing for a Unit Root in Panels with Dynamic Factors, Mimeo, University of Southern California Law School.
18. Morris, M. H., & Kuratko, D. F. (2002). Corporate Entrepreneurship: Entrepreneurial Development within Organizations. South-Western Pub.
19. Pesaran, M. H., Y. Shin, and R. P. Smith., (1999), Pooled Mean Group Estimation of Dynamic Heterogeneous Panels. Journal of the American Statistical Association, 94: 621–634.
20. Pesaran, M. H., (2004), General Diagnostic Tests for Cross Section Dependence in Panels, http://repec.iza.org/dp1240.pdf Access Date: 07.11.2015.
21. Pesaran, M. H. (2007). A Simple Panel Unit Root Test in The Presence of Cross‐Section Dependence. Journal of Applied Econometrics, 22(2), 265-312.
22. Phillips, P.C.B., Sul, D. (2003). Dynamic Panel Estimation and Homogeneity Testing under Cross-Section Dependence, Econometrics Journal, 6, 217-259.
23. Price, D., P., Stoica, M., Boncella, R., J., (2011), the Relationship between Innovation, Knowledge, and Performance in Family and Non-Family Firms: an Analysis of SMEs, Journal of Innovation and Entrepreneurship, 2(14), 1-20.
24. Rooks, G., Szirmai, A., and Serwanga, S., (2009), Social Capital and Innovative Performance in Developing Countries The Case of Ugandan Entrepreneurs, 7th GLOBELICS conference on Inclusive Growth, Innovation and Technological Change Dakar, Senegal, 6-8 October 2009.
25. Setyanti, S., W., L., H., Troena, E. A., Nimran, U., and Rahayu, M., (2013), Innovation Role in Mediating the Effect of Entrepreneurship Orientation, Management Capabilities and Knowledge Sharing Toward Business Performance: Study at Batik SMEs in East Java Indonesia, Journal of Business and Management, 8(4),16-27.
26. Shaw, E., O'Loughlin, A., McFadzean, E., (2005), Corporate Entrepreneurship and Innovation part 2: a Role‐and Process‐Based Approach, European Journal of Innovation Management, 8(4), 393-408.
27. Tang, L., and Koveos, E., P., (2004), Venture Entrepreneurship, Innovation Entrepreneurship, and Economic Growth, Jouurnal of Developmental Entrepreneurship, 9(2), 61-171.
28. Wong, K., P., Ho, Y., P., and Autio, E., (2005), Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data, Small Business Economics, 24, 335–350.
29. Zhao, F. (2005). Exploring the Synergy between Entrepreneurship and Innovation. International Journal of Entrepreneurial Behavior & Research, 11(1), 25-41.
30. OECD, OECDstat, Science, Technolgy and Patent Indicators, Main Science and Technology Indicators, http://stats.oecd.org/ Access Date: 06.15. 2014.
31. Knowledge Web on SMEs and Entrepreneurship, Entrepreneurs International (Compendia), http://data.ondernemerschap.nl/webintegraal/userif.aspx?SelectDataset=31&SelectSubset=113&Country=UK Access Date: 06.15.2014.
32. http://www.gemconsortium.org/What-is-GEM Access Date: 08. 28.2014.
33. http://knowledge.wharton.upenn.edu/article/the-entrepreneurship-vacuum-in-japan-why-it-matters-and-how-to-address-it/ Access Date: 08.28.2014.