Zoltan J. Acs

The Global Entrepreneurship and Development Index Methodology

While composite indicators have becoming popular in many fields over the last two decades, the Global Entrepreneurship and Development Index (GEDI) is the first complex index focusing on the multidimensional quality rather than the quantity aspects of entrepreneurship. GEDI is similar to other indices having a complex structure consisting of variables (31), pillars (14), and sub-indices (3). However, the GEDI methodology differs from the others in two important respects: (1) it combines individual and institutional variables and (2) it considers the interdependencies of the system. For the interdependencies we developed a Penalty for Bottleneck (PFB ) methodology. The central tenet of the PFB is that the performance of the system depends on the weakest link. Higher scoring pillars cannot exhibit their full effect on the performance of the system because of the bottleneck. The uniqueness of this methodology is that the elements of the system are only partially substitutable with each other.

The Entrepreneurial Ecosystem: The Regional Entrepreneurship and Development Index

Our article develops a Regional Entrepreneurship and Development Index (REDI) for capturing the contextual features of the entrepreneurial ecosystems. Building on the National Systems of Entrepreneurship Theory, REDI advances our understanding to profile Entrepreneurial Ecosystems. An important aspect of the REDI method is the Penalty for Bottleneck analysis, which helps identifying constraining factors at the system level. The index structures the ecosystem disparities amongst a mix of 125 NUTS 1 and NUTS 2 regions for 24 EU countries and provides regional level policy suggestions to improve the level of entrepreneurship and optimize resource allocation over the different pillars of the ecosystem.

Institutions, Entrepreneurship and Growth: The Role of National Entrepreneurial Ecosystems

We explore empirically the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, either independently or in combination in an ecosystem, represent the “missing link” in explaining cross country differences in productivity. To do this, we introduce a new concept: namely National Entrepreneurial Ecosystem that is based on a methodology that combines institutions and human agency into an interdependent system of complementarities. We argue that entrepreneurship operating in particular institutional contexts, perhaps via the National Entrepreneurial Ecosystem, impacts efficiency which measures how effectively given technology and factors of production are actually used. We explore the empirical relevance of these ideas using data from a representative global survey and institutional sources for 46 counties over the period 2002-2011. We find support for the independent impact of institutions as well as for the role of the ecosystem in less developed economies.

The Regional Entrepreneurship and Development Index (REDI): The Case of Spain

This paper constructs a Regional Entrepreneurship and Development Index (REDI) that captures the contextual features of entrepreneurship across regions. Using both institutional data and survey data weaknesses in the incentive structure that affects regional development can be identified. The entrepreneurial disparities among regions are analysed at the country and regional level using a penalty for bottleneck methodology. The methodology allows us to coordinate public policy action at national and regional levels.