Title: The knowledge spillover theory of entrepreneurship: an application to foreign direct investment

Authors: Zoltan J. Acs; David J. Brooksbank; Colm O'Gorman; David Pickernell; Siri Terjesen

Addresses: School of Public Policy, George Mason University, 3401 Fairfax Drive, Arlington, VA 22201, USA. ' Cardiff School of Management, University of Wales Institute Cardiff, Western Avenue, Cardiff, CF5 2YB, UK. ' DCU Business School, Dublin City University, Dublin 9, Ireland. ' Centre for Enterprise, Business School, University of Glamorgan, Pontypridd, CF37 1DL, UK. ' Department of Management and Entrepreneurship, Kelley School of Business, Indiana University, 1309 E. 10th St., Bloomington, Indiana 47405, USA

Abstract: Does the knowledge spillover theory of entrepreneurship provide an explanation for the emergence of knowledge-based entrepreneurship in Ireland and Wales? To examine the reasons for different levels of knowledge-based entrepreneurship in these two regions we explore FDI and entrepreneurship policy. We outline key measures of knowledge creation, and evaluate the extent and nature of FDI activity and its relationship with entrepreneurship in general and knowledge-based entrepreneurship in particular. Policy implications include the need for more integrated policy directions for countries that are characterised by weak knowledge creating institutions yet wish to encourage knowledge-based entrepreneurship.

Keywords: knowledge spillovers; foreign direct investment; Ireland; Wales; FDI; United Kingdom; knowledge-based entrepreneurship; entrepreneurship policies; knowledge creation; policy implications; integrated policies; policy directions; knowledge creating institutions; small and medium-sized enterprises; SMEs; entrepreneurs; international entrepreneurship; internationalisation.

DOI: 10.1504/IJESB.2012.045206

International Journal of Entrepreneurship and Small Business, 2012 Vol.15 No.2, pp.237 - 261

Published online: 14 Aug 2014 *