Economic Freedom and Innovative Entrepreneurial Activity

Document Type : Original Article

Authors

1 M.A. of Entrepreneurship Management Razi University, Kermanshah

2 Assistant Professor of Management and Entrepreneurship at Razi University, Iran.

3 Associate Professor of Economics at Razi University, Iran.

Abstract

The purpose of this study was to investigate the effect of economic freedom on the level of entrepreneurial activity in 17 innovative countries, from 2005 to 2014. In this study, we used the standard Fraser Economic Freedom Data and Entrepreneurship Global Monitor Entrepreneurship data. The panel data was analyzed in the Eviews9 and Stata14 software environment by generalized least squares estimation and ordinary least squares. The results of this research show that economic freedom has a significant relation with the level of entrepreneurial activity Among the indicators surveyed, the most impact on the level of innovative entrepreneurial activity in 17 innovative countries has been estimated by the Foreign Trade Freedom Index, regulation of rules and regulations, and security of property rights.

Keywords

References

Aghion, P., & Howitt, P., 1992. A model of growth through creative destruction. Econometrica, 60(2), pp. 323-352.
Anokhin, S., & Schulze, W. S., 2009. Entrepreneurship, innovation, and corruption. Journal of business venturing, 24(5), pp. 465-476.‏
Baumol, W., 1993. Entrepreneurship, management, and the structure of payoffs. Cambridge: MIT Press.
Bradley. S.W and Klein. P.G.,2016. Institutions, Economic Freedom, and Entrepreneurship: The Contribution of Management Scholarship. Academy of Management Executive 30(3), pp. 211-221.
Chari, M. D. & Dixit, J., 2015. Business groups and entrepreneurship in developing countries after reforms, Journal of Business Research, 68(6), pp. 1359- 1366.
Dereli, D. D., 2015. Innovation management in global competition and competitive advantage. Procedia-Social and behavioral sciences, Volume (195), pp. 1365-1370.‏
Dutz, M.A., Ordover, J.A. & Willig, R.D.,2000. Entrepreneurship, access policy and economic development: lessons from industrial organization, European Economic Review, 44 (4), pp. 739-747.
Doran.J, McCarthy.N, O’Connor.M .,2018. The role of entrepreneurship in stimulating  economic growth in developed and developingcountries. Cogent Economics & Finance (2018), Volume (6), 1442093
Friedman, M., 1962. Capitalism and freedom. Chicago: University of Chicago Press.
Friedman, B. A., 2011. The relationship between governance effectiveness and entrepreneurship, International Journal of Humanities and Social Science, 1(17), pp. 221- 225.
Ferreira, J. J., Fayolle, A., Fernandes, C., & Raposo, M.,2017. Effects of Schumpeterian and Kirznerian entrepreneurship on economic growth: Panel data evidence. Entrepreneurship & Regional Development, Volume (29), pp. 27–50. https://doi.org/10.1080/08985626.2016.1255431.
Hashemzadeh, E., Hajihosseini, H., Radfar, R., Malekzadeh, K. (2014). Effective Factors in Creating Innovation Capabilities: A Case Study of an Iranian Aviation Industrial-Research Center. Innovation Management Journal, 3(1), pp. 75-100.
Hafez Nia, Mohammad Reza (2000). Introduction to Research Methodology in Humanities, Tehran, Sadegh.
Heirani, H., bagherimoghaddam, N., karimian, H. (2014). Dynamic structural-functional analysis of technology development process in the context of Technological innovation system; The case of Iran combined heat and power(CHP) technology. , 2(3), 49-80. doi: 10.22104/jtdm.2015.181.
Henrekson, Magnus., 2005. Entrepreneurship: A Weak Link in the Welfare State? Industrial and Corporate Change 14 (3), pp. 437-467.
Hernán Herrera-Echeverri, Jerry Haar, Juan Benavides Estévez-Bretón., 2013. Foreign direct investment, institutional quality, economic freedom and entrepreneurship in emerging markets. Journal of Business Research Volume (73), pp. 11-20.
Hidalgo, A., & Albors, J., 2008. Innovation management techniques and tools: a review from theory and practice. R&d Management, 38(2), pp. 113-127.‏
Global Entrepreneurship Monitor., 2017. Total early-stage Entrepreneurial Activity (TEA). Data retrieved August 20, 2014, from: Key Indicators. http://www.gemconsortium.org/Data.
Johnson.S & McMillan. J & Woodruff. CH., 2002.  American Economic Association. The American Economic Review, Vol. 92, No. 5, pp. 1335-1356.
Jafari Samimi, A, Amoli Diva, K .(2010). Investigating the relationship between economic liberalization and the efficiency of government in the Middle East and North Africa .Journal of Economics Research, 10(39), pp. 1-37.
Kahn, K. B., 2018. Understanding innovation. Business Horizons, 61(3), pp. 453-460.‏
Khalili Iraqi, S. M, Goodarzi Farahani, Y. (2014). The Impact of Intellectual Property Rights on Economic Growth. Encyclopedia of Economic Law, 20 (4).
Kuckertz. A, Berger. E.S.C, Mpeqa.A.,2016.The more the merrier? Economic freedom and entrepreneurial activity. Journal of Business Research. 69(4), pp. 1288-1293 · April 2016.
McMullen, J. S., Bagby, D. & Palich, L. E., 2008. Economic freedom and the motivation to engage in entrepreneurial action, Entrepreneurship Theory and Practice, 32(5), pp. 875- 895.
Mir Jalili, S.H.(2007).Historical school doctrines for analyzing Iranian economy, Journal of Economics Research, 7(26), pp. 43-75.
Reynolds Paul D. and Curtin Richard T.,2008. BusinessCreation in the United State: Panel Study of Entreprenurial.
Research Center of the Islamic Consultative Assembly (2011). Review and critique of global indicators of economic freedom (Heritage Foundation and Fraser Institute). Tehran.
Segerstrom, P.S, Anent, T.C.A., & Dinopoulos, E., 1990. A Schumpeterian model of the product life cycle. American Economic Review, 80 (5), pp. 1077-1091.
Sobel, R. S., Clark, J. R. & Lee, D. R., 2007. Freedom, barriers to entry, entrepreneurship, and economic progress, The Review of Austrian Economics, 20(4), pp. 221- 236.
Schumpeter, J.A. ,1911. The theory of economic development. Cambridge: Harvard University Press.
 Schumpeter, J.A. ,1942. Capitalism, socialism, and democracy. London: Harper Perennial.
Stam, E., & Nooteboom, B.,2011. 26 Entrepreneurship, innovation and institutions. Handbook of research on innovation and entrepreneurship, 421.‏
Wiseman, T., & Young, A. T., 2013. Economic Freedom, Entrepreneurship, & Income Levels: Some US State-Level Empirics. American Journal of Entrepreneurship, 6(1).‏
Wikhamn, W., 2019. Innovation, sustainable HRM and customer satisfaction. International Journal of Hospitality Management, Volume (76), pp. 102-110.‏
Zali, M.R, Razavi, S.Mostafa, Yadollahi, J, Kordnaeij, A. (2010). Evaluation of Entrepreneurship Status in Iran, First Printing, Tehran, Institute of Labor and Social Security.
Innovation Management Journal
Volume 8, Issue 2 - Serial Number 28
September 2019
Pages 1-20

Files

History

  • Receive Date: 19 February 2019
  • Revise Date: 08 May 2019
  • Accept Date: 26 June 2019

Share

How to cite

Statistics