The Impact of Innovation and Entrepreneurship on Economic Growth: An Intercountry Study

Considering the role of creativity, innovation and entrepreneurship in economic growth and development, addressing these issues can be of particular importance. Particularly, the effect of these variables on economic growth is ambiguous and the need for empirical examination of this relationship seems to be necessary. Some studies, including Schumpeter (1947) and Roemer (1986), have highlighted the prominent role of entrepreneurship and innovation in the process of economic growth. The main purpose of this study is to investigate the effect of innovation (patent index) and entrepreneurship on the economic growth of selected countries, using GLS estimation method. For this purpose, data from 20 selected countries during the period 2001-2015 and the panel data approach have been used. The results of the model indicate that these two variables have a positive and significant effect on economic growth in the above countries ؛So that 1 percent increase in the rate of entrepreneurship and innovation (the number of patents registered) resulted in an increase of 13 and 4 percent, in the growth rate of these countries, respectively. Therefore, in the present study, creating an efficient innovation and entrepreneurship system is considered necessary to achieve appropriate economic growth.