The Impact of Innovation and Entrepreneurship on Competitiveness

There is broad agreement around how innovation and entrepreneurship contribute towards competitiveness. This chapter evaluates ways in which innovation impacts on competitiveness and how the effects of entrepreneurship shape and fashion competitiveness. Using estimations of dynamic panels with the GMM estimator methodology by Arellano-Bover/Blundell-Bond, we analysed the disaggregated data for 276 NUTS2 regions from various European Union member states collected by Eurostat regional offices between 2005 and 2012. This study provides practical input into decision-making and effective policies that foster sustainable entrepreneurship. Our research seeks to address the gap in the literature concerning the measurement of innovation and entrepreneurship, and its influence over competitiveness at the European Union NUTS 2 regional level