Skip to main content

Entrepreneurship, Economic Growth and Public Policy

Abstract

This paper is an introduction to the second Global Entrepreneurship Research Conference. The conference focused on developing a better understanding of the relationships among entrepreneurship, economic growth and public policy, and variations according to the stage of economic development. The papers in this special issue conduct analysis with GEM micro-and-macro data, and offer several important policy recommendations. First, middle-income countries should focus on increasing human capital, upgrading technology availability and promoting enterprise development. It is important to start enterprise development policies early because the main drivers are perceptual variables that are difficult to change in the short run. Second, for developed economies, reducing entry regulations, in most cases, will not result in more high-potential startups. Both labor market reform and deregulation of financial markets may be needed to support growth of high-performance ventures.

This is a preview of subscription content, access via your institution.

References

  1. Acs Z. J. 1984 The Changing Structure of the U.S. Economy, New York: Praeger

    Google Scholar 

  2. Acs Z. J. 2006 How is Entrepreneurship Good for Economic Growth? Innovations 1(1), 97–107

    Article  Google Scholar 

  3. Acs, Z. J., P. Arenius, M. Hay and M. Minniti, 2005, Global Entrepreneurship Monitor: 2004 Executive Report, Babson College and London Business School

  4. Acs Z. J., C. Armington 2006 Entrepreneurship, Geography and American Economic Growth, Cambridge: Cambridge University Press

    Google Scholar 

  5. Acs Z. J., D. B. Audretsch 1989 Innovation in Large and Small Firms: An Empirical Analysis The American Economic Review 78(4), 678–689

    Google Scholar 

  6. Acs Z. J., D. B. Audretsch 2002 The Emergence of Entrepreneurial Society Stockholm Sweden

    Google Scholar 

  7. Acs, Z. J., D. B. Audretsch, P. Braunerhjelm and B. Carlsson, 2004, The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth, Center for Economic Policy Research, Discussion Paper

  8. Acs, Z. J., D. B. Audretsch, P. Braunerhjelm and B. Carlsson, 2006, The Knowledge Spillover Theory of Entrepreneurship, Center for Economic Policy Research, Discussion Paper

  9. Acs, Z. J., O. C. Gorman, L. Szerb and S. Terjesen, this issue, Could the Irish Miracle be Repeated in Hungary

  10. Acs Z. J., D. J. Storey 2004 Introduction: Entrepreneurship and Economic Development Regional Studies 38(8), 871–877

    Article  Google Scholar 

  11. Acs, Z. J. and S. Terjesen, 2005, Born Local: Two Views of Internationalization, Paper presented at JIBS CIBER Conference: Emerging Research Frontiers in International Business Studies, Rotterdam, September 28–30, 2005

  12. Acs Z. J., A. Varga 2005 Entrepreneurship, Agglomeration and Technological Change Small Business Economics 24(3), 323–334

    Article  Google Scholar 

  13. Arrow K. (1962) Economic Welfare and the Allocation of Resources for Invention in Nelson R. R. (ed.) The Rate and Direction of Inventive Activity, Princeton: Princeton University Press. 609–626

    Google Scholar 

  14. Audretsch D. B., M. C. Keilbach, E. E. Lehmann 2006 Entrepreneurship and Economic Growth New York: Oxford University Press

    Google Scholar 

  15. Autio, E., 2005, Global Entrepreneurship Monitor: 2005. Report on High-Expectation Entrepreneurship, Babson College and London Business School

  16. Baumol W. J. 1993 The Free Market Innovation Machine Princeton, N.J.: Princeton University Press

    Google Scholar 

  17. Baumol W. J., R. E. Litan, C. J. Schramm 2007 Good Capitalism, Bad Capitalism New Haven: Yale University Press

    Google Scholar 

  18. Blanchflower D., P. Levine, D. Zimmerman 2003 Discrimination in The Small Business Credit Market Review of Economics and Statistics 85(4), 930–943

    Article  Google Scholar 

  19. Brainard, L., R. E. Litan and N. Warren, 2005, Insuring America’s Workers in a New Era of Off shoring, Policy Brief No. 143, The Brookings Institution, Washington D.C

  20. Brezneitz D. 2007 Innovation and the State, New Haven: Yale University Press

    Google Scholar 

  21. Bygrave, W. and S. Hunt, 2004, Global Entrepreneurship Monitor: 2004 Financing Report, Babson College and London Business School

  22. Galbraith J. K. 1967 The New Industrial State New York: New American Library

    Google Scholar 

  23. Gentry W. M., R. G. Hubbard 2004 “Success Taxes, Entrepreneurial Activity and Innovation,” NBER Working Paper 10551 Cambridge, MA: National Bureau of Economic Research

    Google Scholar 

  24. Griliches, Z., 1992, ‘The Search for R & D Spillovers’, Scandinavian Journal of Economics, 94, 29–47

    Google Scholar 

  25. Hart D. M. 2003 The Emergence of Entrepreneurship Policy: Governance, Start-ups, and Growth in the U.S. Knowledge Economy Cambridge: Cambridge University Press

    Google Scholar 

  26. Holtz-Eakin D., H. Rosen 2004 Public Policy and the Economics of Entrereneurship Cambridge: MIT Press

    Google Scholar 

  27. Kamara E., P. Karaca-Mandic and E. Talley, 2005, Going-Private Decisions And the Sarbanes-Oxley Act, Kauffman-Rand Center for the Study of Small Business and Regulation, September

  28. Kauffman Foundation, 2006, Roadmap for an Entrepreneurial Economy

  29. Lucas R. 1993 Making a Miracle Econometrica 61(2), 251–272

    Article  Google Scholar 

  30. Lundstrom A., L. A. Stevenson 2005 Entrepreneurship Policy: Theory and Practice Boston: Springer

    Google Scholar 

  31. Merrill S. A., R. C. Levin, M. M. Meyers 2004 A Patent System for the 21st Century Washington, D.C.: The National Academies Press

    Google Scholar 

  32. Oliner S. D. and D. E. Sichel, 2002, “Information Technology and Productivity: Where are We Now and Where are We Going?” Federal Reserve Bank of Atlanta Economic Review, pp. 15–44

  33. Reynolds P., N. Bosma, E. Autio, S. Hunt, N. De Bono, I. Servais, P. Lopez-Garcia, N. Chin 2005 Global Entrepreneurship Monitor: Data Collection Design and Implementation, 1998–2003 Small Business Economics 24(3), 205–231

    Article  Google Scholar 

  34. Romer P., 1990, Endogenous Technological Change Journal of Political Economy 98(5, Part 2), S71–S102

    Article  Google Scholar 

  35. Schramm C. J. 2004 Building Entrepreneurial Economies Foreign Affairs 83(4), 104–115

    Google Scholar 

  36. Schramm C. J. 2006 The Entrepreneurial Imperative New York: Collins

    Google Scholar 

  37. Storey D. J., 2003, Entrepreneurship, Small and Medium Sized Enterprises and Public Policies in Audretsch D. B., Acs Z. J. (eds.) Handbook of Entrepreneurship Research Kluwer Academic Publishers, Boston/Dordrecht, pp. 476–511

    Google Scholar 

  38. Sternberg R., S. Wennekers, 2005 Determinants and Effects of New Business Creation Using Global Entrepreneurship Monitor Data Small Business Economics 24(3), 193–203

    Article  Google Scholar 

  39. Van Stel A., M. Carree, R. Thurik (2005) The Effect of Entrepreneurial Activity on National Economic Growth Small Business Economics 24(3), 311–321

    Article  Google Scholar 

  40. Wennekers A. R. M., A. J. van Stel, A. R. Thurik, P. D. Reynolds (2005) Nascent Entrepreneurship and the Level of Economic Development Small Business Economics 24(3), 293–309

    Article  Google Scholar 

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Zoltan J. Acs.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Acs, Z.J., Szerb, L. Entrepreneurship, Economic Growth and Public Policy. Small Bus Econ 28, 109–122 (2007). https://doi.org/10.1007/s11187-006-9012-3

Download citation

Keywords

  • Central Europe
  • development
  • entrepreneurship policy
  • GEM
  • micro data

JEL Classification

  • L26
  • M13
  • O4
  • P3