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August 14, 2025SystemsOpen Access

Research on the Dynamic Relationship Between the Growth of Innovation Activity and Entrepreneurial Activity in China

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Authors

SLSong LinCentral University of Finance and EconomicsHLHaiyao LiuCentral University of Finance and Economics

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Overview

Panel data analysis reveals a bidirectional causal relationship between innovation and entrepreneurial activities, suggesting tailored regional policies.

Key Points

  • Robust evidence indicates that innovation activities stimulate the growth of entrepreneurial ventures, and vice versa, in China.
  • Using panel data from 31 provinces from 2000 to 2022, a positive feedback loop was identified between innovation and entrepreneurship.
  • Employing a Panel Vector Autoregression (PVAR) approach confirmed significant, consistent bidirectional effects.
  • Regional economic conditions and resource endowments significantly influence the dynamics between innovation and entrepreneurship.

Cite This Study

Lin et al. (2025) studied this question.

synapsesocial.com/papers/68af5407ad7bf08b1eadae84https://doi.org/10.3390/systems13080698
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