The Impact of Digitalization on Entrepreneurial Innovation: A Comparative Analysis Between Developing Economies in Asia and in Other Regions

Yeng-May Tan (), José Ernesto Amorós (), Erkko Autio (), Kun Fu () and Donghyun Park ()
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Yeng-May Tan: Xiamen University Malaysia
José Ernesto Amorós: EGADE Business School, Tecnológico de Monterrey
Erkko Autio: Imperial College London
Kun Fu: Loughborough University
Donghyun Park: Asian Development Bank

No 776, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This study explores the relationship between digitalization and entrepreneurial innovation across developing economies. We assess whether higher levels of digital technology development within a country enhance the innovation potential of its entrepreneurial ventures and how this impact varies between Asia and other regions. Using data from the Global Entrepreneurship Monitor (2013–2022) and the Global Innovation Index along with its subindexes, we examine 11 developing economies in Asia and 57 developing economies in other regions. We find that digital technology development generally boosts entrepreneurial innovation. However, our results reveal a significant regional variation. The impact on product innovation is significantly stronger in developing economies outside Asia. This suggests that while digitalization supports innovation generally, its effects may be more transformative in regions outside Asia. These findings offer valuable insights for policymakers seeking to leverage digitalization to drive innovation and economic growth.

Keywords: digitalization; digital technologies; entrepreneurial innovation; ICT development; developing Asia; developing economies (search for similar items in EconPapers)
JEL-codes: L26 O31 O33 O57 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2025-04-28
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ict, nep-sbm, nep-sea and nep-tid
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