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Factors of Innovative Entrepreneurial Acrtivity: Cross-Country Analysis

Student: Kukarina Alena

Supervisor: Elena N. Tarunina

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2017

Though innovation and entrepreneurship are viewed as synonymic patterns, not every entrepreneur can actually be considered an innovator since the majority of existing firms merely imitate their competitors` activity rather than create their own business concept. This paper aims at revealing and analyzing factors influencing the choice of an individual in favor of precisely innovative entrepreneurial activity. For this purpose, the double-level system of factors is considered relevant: individual characteristics of entrepreneurs explaining their behavior and exogenous factors reflecting the environment specificities within which an entrepreneur functions. After reviewing a set of empirical research papers, the hypotheses are introduced describing the influence of each factor on the probability of an individual to choose innovative entrepreneurship. Present research analyzes the codependence of risk preferences, educational background, experience, self-confidence, perception of a person and their decision to start an innovative entrepreneurial venture. As macro-level determinants, the prestige of higher education attainment in the society of a country and the major economic development indicator – GDP per capita – are taken as exterior characteristics. Apart from all the rest, the revealed determinants of entrepreneurial propensity to choose innovative activity are analyzed for each economic development stage group of countries separately: factor-, efficiency- and innovation-driven.

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