Abstract
This paper constructs a Global Entrepreneurship Index (GEINDEX) that
captures the contextual feature of entrepreneurship across countries.
We find the relationship between entrepreneurship and economic development
to be mildly S-shaped not U-shaped or L-shaped. Our findings suggest
moving away from simple measures of entrepreneurship across countries
illustrating a U-shaped or L-shaped relationship to more complex
measures, which are positively related to economic development. Implications
for public policy suggest that institutions need to be strengthened
before entrepreneurial resource can be deployed to drive innovation.
