Group 4: Holly Good | Stephen Mashonga | Przemyslaw J.

Pikul | Shen Yuan

The impact of innovation

& high growth enterprise
Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data
Wong, P.K., Ho, Y.P. and Autio, E. (2005). Small Business Economics, Vol 24, No 3, pp 335-360.

Global Entrepreneurship Monitor

Reporting annually since 1997 with three key aims:
• Measure differences in the level of entrepreneurial activity among countries
• Uncover factors determining national levels of entrepreneurial activity
• Identify policies that may enhance the national level of entrepreneurial activity

Total Entrepreneurial Activity

• Overall TEA • Opportunity TEA
• Necessity TEA • High Growth TEA
Important factor in economic development
and growth
Enhances productivity
Requiresentrepreneurship to become a
commercial success
Investment in R&D and appropriability of
innovation determines long term growth
Technological innovation – endogenous
determinants and knowledge spill overs
Innovation
 Early-stage Entrepreneurial Activity (TEA)

Nascent Owner-manager of
Potential entrepreneur: Owner-manager of
entrepreneur: an established
opportunities, a new business (up
involved in setting to 3.5 years old) business (more than
knowledge, and skills up a business 3.5 years old)

Conception Firm birth Persistence

Necessity TEA Opportunity TEA High Potential TEA

Basic requirements Efficiency enhancers Innovation &
• Institutions • Higher education & training entrepreneurship
• Infrastructure • Goods market efficiency • Entrepreneurial finance
• Government entrepreneurship
• Macroeconomic stability • Labour market efficiency programmes
• Health and primary • Financial market sophistication • Entrepreneurship education
• Technological readiness • R&D transfer
education • Commercial, legal infrastructure for
• Market size entrepreneurship
• Entry regulation

Influence on GDP growth

Negative – slower or similar growth Positive – faster growth Positive – faster growth

High Growth Enterprise

Adapted from Global Enterprise Monitor: 2008 Executive Report (Bosma et al. 2009)
Discussion #iegroup4