Entrepreneurship and Innovation as Drivers of Sustainable Economic Growth: An Empirical Study

Entrepreneurship and innovation have emerged as crucial drivers of sustainable economic growth in the modern knowledge-based economy. This study empirically examines the impact of entrepreneurship and innovation on sustainable economic growth using secondary data collected from reliable international sources such as the World Bank and the World Intellectual Property Organization (WIPO). The analysis is based on a ten-year period from 2014 to 2023, which enables an assessment of recent economic trends and structural changes. Entrepreneurship is measured through new business density, while innovation is represented by research and development (R&D) expenditure as a percentage of GDP and patent applications. Sustainable economic growth is assessed using the GDP growth rate. The study employs quantitative research methods, including descriptive statistics, Pearson correlation analysis, and regression analysis, using SPSS software to test the proposed hypotheses. The empirical results indicate a strong and positive relationship between entrepreneurship, innovation, and sustainable economic growth. Both entrepreneurship and innovation variables exhibit statistically significant impacts on GDP growth, leading to the rejection of the null hypotheses that entrepreneurship and innovation have no significant effect on sustainable economic growth. The findings underscore the importance of fostering entrepreneurial ecosystems and strengthening innovation capabilities to enhance economic performance and resilience. The study concludes that increased support for new business creation, higher investment in R&D, and effective innovation policies can play a vital role in promoting sustainable economic growth. These results provide valuable insights for policymakers, researchers, and development practitioners aiming to design growth strategies that are both economically robust and sustainable in the long run.

Entrepreneurship, Innovation, Sustainable Economic Growth

1. Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlsson, B. (2012). Growth and entrepreneurship. Small Business Economics, 39(2), 289–300. https://doi.org/10.1007/s11187-010-9307-2 [Google Scholar] [Crossref]

2. Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323–351. https://doi.org/10.2307/2951599 [Google Scholar] [Crossref]

3. Audretsch, D. B., Keilbach, M., & Lehmann, E. (2006). Entrepreneurship and economic growth. Oxford Review of Economic Policy, 22(2), 182–195. https://doi.org/10.1093/oxrep/grj013 [Google Scholar] [Crossref]

4. Bosma, N., Sanders, M., & Stam, E. (2018). Institutions, entrepreneurship, and economic growth in Europe. Small Business Economics, 51(2), 483–499. https://doi.org/10.1007/s11187-018-0012-x [Google Scholar] [Crossref]

5. Carree, M. A., & Thurik, A. R. (2010). The impact of entrepreneurship on economic growth. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship research (pp. 557–594). Springer. [Google Scholar] [Crossref]

6. Grossman, G. M., & Helpman, E. (1991). Innovation and growth in the global economy. MIT Press. [Google Scholar] [Crossref]

7. OECD. (2015). Innovation policies for inclusive growth. OECD Publishing. https://doi.org/10.1787/9789264229479-en [Google Scholar] [Crossref]

8. Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71–S102. https://doi.org/10.1086/261725 [Google Scholar] [Crossref]

9. Schumpeter, J. A. (1934). The theory of economic development. Harvard University Press. [Google Scholar] [Crossref]

10. Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513 [Google Scholar] [Crossref]

11. World Bank. (2024). World Development Indicators. World Bank. https://databank.worldbank.org/source/world-development-indicators [Google Scholar] [Crossref]

12. World Intellectual Property Organization. (2024). WIPO IP statistics data center. WIPO. https://www.wipo.int/ipstats [Google Scholar] [Crossref]

• The Indirect Effect of Liquidity and Activity on Company Value with Profitability as an Intervening Variable
• Effect of Financial Skills, Knowledge, and Attitude on The Financial Behaviour of Clergy
• A Decade of Review: Trends in Budget Execution and Financial Performance of Development Projects in Tanzania (2014/15-2023/24)
• The Influence of Pre-Project Planning on the Budget Absorption Rate of Public Funded Infrastructure Projects in Kenya a Comparative Case Study of Narok, Migori, and Kisii County Government Projects
• Assessment of Factors Influencing Digital Transformation in Hotels’ Facility Management in Abuja Metropolis, Nigeria