Laborda, LeopoldoGuasch, Jose LuisSotelsek, Daniel2012-03-192012-03-192011-07-01https://hdl.handle.net/10986/3502Increasingly, entrepreneurship is being discussed and considered as a source of high economic growth and competitiveness. A conceptual process of creative construction that characterizes the dynamics between entrants and incumbents can prove quite useful to analyze the impact of countries' entrepreneurship capital on economic performance and can be a guide for economic policy. This paper applies a Stochastic Frontier Analysis approach to test the hypothesis that entrepreneurship capital promotes economic performance by serving as a conduit of knowledge spillovers. In addition, kernel density functions are employed to analyze convergence (or divergence) in the efficiency estimated for individual countries. The empirical evidence and results here tend to support the hypothesis. Specifically, the empirical analysis shows that the rate of expenditure on research and development in relation to new businesses registered has a positive and significant effect in increasing technical efficiency. These factors facilitate the dissemination of existing knowledge, develop entrepreneurship capital, and thus provide the missing link to economic performance -- entrepreneurship capital. The authors also show the trends and dynamics of changes in countries technical efficiency.CC BY 3.0 IGOABSORPTIVE CAPACITYAGRICULTURAL PRODUCTSAGRICULTUREALLOCATIVE EFFICIENCYANIMAL PRODUCTSBENEFICIAL EFFECTSBIOTECHNOLOGYBOUNDARIESBUSINESS ENTRYBUSINESSESCAPABILITIESCAPABILITYCAPABILITY ENHANCEMENTCAPITAL EXPENDITURESCDCOMPETENCIESCOMPETITIVE ADVANTAGECOMPETITIVENESSCOMPETITORSCONCEPTUAL FRAMEWORKCONSTANT RETURNS TO SCALECONTRACTUAL AGREEMENTSCONVERGENCE HYPOTHESISCUSTOMER SERVICESDEVELOPMENT POLICYDISCUSSIONSDISTRIBUTED LAGSDYNAMIC ANALYSISE-MAILECONOMETRICSECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC THEORYECONOMICSELASTICITYEMPLOYMENTEMPLOYMENT CREATIONENERGY RESOURCESENTERPRISE SECTORENTREPRENEURIAL OPPORTUNITIESEQUIPMENTEQUIPMENTSEXCHANGE RATESEXISTING KNOWLEDGEEXPORTSFINANCIAL SERVICESFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFUTURE RESEARCHGDPGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROSS VALUEGROWTH MODELSGROWTH RATEGROWTH THEORYHANDICRAFTSHUMAN CAPITALIDEAIDEASINEFFICIENCYINHERITANCEINNOVATIONINNOVATIONSINSIGHTSINTELLECTUAL PROPERTYINTERNATIONAL COMPETITIVENESSKNOWLEDGE TRANSFERLABOR FORCELABOR ORGANIZATIONLABOURLEADINGLEARNINGMANUFACTURINGMANUFACTURING INDUSTRIESMEDIUM ENTERPRISENATURAL RESOURCESNETWORKSNEW TECHNOLOGYOPEN ACCESSOUTPUTSOUTSOURCINGPERFORMANCESPHONEPOLITICAL ECONOMYPOSITIVE EFFECTSPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRODUCT INNOVATIONSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTIVITYR&DREAL GDPRESULTRESULTSSIDE EFFECTSSILICONSOCIAL CAPITALSOFTWARE PRODUCTIONSUPPLY CHAINTECHNICAL SUPPORTTECHNOLOGY TRANSFERTEXTILESTIME PERIODSTRADE DEFICITTRANSMISSIONUNEMPLOYEDUNIVERSITIESUSE OF KNOWLEDGEUSESVALUE ADDEDWEALTHWEALTH CREATIONWEBWOODWorld Bank10.1596/1813-9450-5739