Revisiting the knowledge spillover paradox: the impact of infrastructure

Ronja Kirschning () and Matthias Mrożewski
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Ronja Kirschning: Jean-Baptiste Say Institute
Matthias Mrożewski: Jean-Baptiste Say Institute

Small Business Economics, 2024, vol. 63, issue 1, No 1, 20 pages

Abstract: Abstract Knowledge is regarded as a key driver of entrepreneurial activity and economic performance. Nevertheless, empirical evidence suggests that the extent to which knowledge spills over and translates into entrepreneurial activity differs tremendously across different regions. These inconsistent results expose the knowledge spillover mechanism as a concept that is not well understood. This paper is one of the few studies to propose an explanation for the seemingly inconclusive results that we find in the literature by considering the role of infrastructure in knowledge spillovers. Using a dataset of 67 countries, we examine the impact of different types of physical and digital infrastructure on the knowledge spillover mechanism. Our empirical results reveal that the extent to which knowledge translates into entrepreneurial activity largely depends upon the development of specific types of digital and physical infrastructure. This paper provides valuable insights into the knowledge spillover mechanism by identifying certain factors that influence the extent to which knowledge translates into entrepreneurial activity. Furthermore, it has important policy implications for countries to promote entrepreneurial activity and economic performance by developing certain types of physical and digital infrastructure.

Keywords: Knowledge spillover theory of entrepreneurship; Digital infrastructure; Physical infrastructure; Country-level entrepreneurship (search for similar items in EconPapers)
JEL-codes: L26 O18 O43 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-023-00833-8

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