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The Role of National Innovation Systems in Entrepreneurship Activities at Baltic State Countries

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Abstract

This study explores the components of national innovation system (NIS) that most contribute to the creation of new enterprises in Baltic state countries for the period from 2005 to 2014. We run ordinary least squares (OLS) regressions for a set of variables that represents four components of NISs, extracted from principal component analysis (PCA), on the number of new enterprises as a dependant variable. We find that infrastructure and economic factors are the most influential components of the NISs in explaining changes in the number of new enterprises in the Baltic state countries. However, regulation factor is insignificant in explaining the dependent variable in Estonia and Lithuania. Moreover, the innovation factor in Latvia does not explain the variation in the number of new enterprises. Hence, it is pivotal for Estonia and Lithuania to improve the institutional and regulation structures in order to increase the number of new enterprises while Latvia needs to encourage innovative activities to capitalize on its industrial competitive advantage.

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Authors and Affiliations

  1. Department of Intellectual Property and Innovation Management, ITMO University, Saint Petersburg, Russia

    Ibrahim Alnafrah

  2. Faculty of Economics, Damascus University, Damascus, Syria

    Ibrahim Alnafrah & Sulaiman Mouselli

  3. Faculty of Business Administration, Arab International University, Damascus, Syria

    Sulaiman Mouselli

Authors
  1. Ibrahim Alnafrah
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  2. Sulaiman Mouselli
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Correspondence to Ibrahim Alnafrah.

Appendices

Appendix 1

Table 7 Quantitative description of the variables of the study (Estonia, Lithuania, Latvia)
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Appendix 2

Table 8 Sources of data
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Alnafrah, I., Mouselli, S. The Role of National Innovation Systems in Entrepreneurship Activities at Baltic State Countries. J Knowl Econ 11, 84–102 (2020). https://doi.org/10.1007/s13132-018-0537-x

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