Does Entrepreneurship reduce Unemployment?

David Audretsch (daudrets@indiana.edu), Martin Carree and Roy Thurik

No 01-074/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: In this paper, we develop two hypotheses: First, regional innovation efforts have a positive impact on regional knowledge based entrepreneurial activity. Second, knowledge based entrepreneurship positively affects regional economic performance. We test these hypotheses using county level data from West Germany, employing a structural equation model to analyze the relationships between latent variables. Our empirical analysis provides evidence supporting both hypotheses. In particular, our results suggest that innovation efforts have an indirect effect on economic performance via entrepreneurship. This indirect effect is neglected in existing empirical studies focusing on the direct effect of innovation on economic performance.

See also 'Does Self-Employment reduce Unemployment?' in the 'Journal of Business Venturing' , 23(6), 2008, 673-86, by A. Roy Thurik, Martin A. Carree, Andre van Stel, David B. Audretsch.

Keywords: entrepreneurship; unemployment; economic development; Gibrat's Law (search for similar items in EconPapers)
JEL-codes: L11 M13 O11 (search for similar items in EconPapers)
Date: 2001-08-02, Revised 2008-10-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20010074

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