Growth and Entrepreneurship: An Empirial Assessment

This paper suggests that the spillover of knowledge may not occur automatically as has typically been assumed in models of endogenous growth. In this paper, entrepreneurship is identified as one such mechanism facilitating the spillover of knowledge. Using a panel of entrepreneurship data for 18 countries, empirical evidence is found that in addition to measures of R&D and human capital, entrepreneurial activity also serves to promote economic growth.