The Effects of Entrepreneurship and Innovation On Economic Growth: Panel Data Approach

Based on the existing theoretical studies, Entrepreneurship and Innovation resulting from the creativity, as the assumption of economic growth, make favorable results of a dynamic economy. Main goal of present study is investigating the effects of Entrepreneurship and Innovation on economic growth in selected countries. For gaining this purpose, we used 30 selected countries’ data in the period 2001-2011 and panel data approach. Estimation results showed a significant positive effect of these two variables on economic growth in this countries, as one percent increase in Entrepreneurship index (TEA) and number of patents (as index of Innovation) result in change on per capita growth rate for 1.44 and 2.54 units respectively. Therefore for gaining economic growth, the better attention to these topics must be in countries’ programs.