Conditions that make ventures thrive: from individual entrepreneur to innovation impact

Brian Chung*, Philip Hans Franses, Enrico Pennings

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Entrepreneurship and innovation create a positive impact on the economy and society. Globally, governments invest resources to support new ventures and facilitate innovation. In this study, we examine this phenomenon by studying the pathway that goes from individual entrepreneur to innovation impact. We measure the effect of entrepreneurial motives on different types of innovations, with a particular focus on its amplification by formal and informal institutional conditions. Specifically, we use multi-level models to analyze annual data of 29 countries for 2006 to 2018. We find that opportunity-driven entrepreneurs are associated with higher levels of radical innovation, breakthrough innovation, and disruptive innovation. Better tax policies and less bureaucracy amplify this positive effect on radical innovation and breakthrough innovation. For necessity-driven entrepreneurs, the regulatory quality amplifies the positive effect on radical innovation and disruptive innovation, while monetary resources dampen this effect. Our findings show that the differences in innovation impact can be explained by differences in entrepreneurial motives and their specific interactions with formal and informal institutional conditions.

Original languageEnglish
Pages (from-to)1177-1200
Number of pages24
JournalSmall Business Economics
Volume62
Issue number3
DOIs
Publication statusPublished - 15 Jul 2023

Bibliographical note

Publisher Copyright:
© The Author(s) 2023.

Fingerprint

Dive into the research topics of 'Conditions that make ventures thrive: from individual entrepreneur to innovation impact'. Together they form a unique fingerprint.

Cite this