Innovation and underground entrepreneurship

Rajeev Goel, James Saunoris and Xingyuan Zhang

The Journal of Technology Transfer, 2015, vol. 40, issue 5, 800-820

Abstract: This paper examines the impact of innovation on the underground economy, focusing on differences between informal entrepreneurship and the overall shadow economy. Using cross-national data and measuring innovative activity alternately by patent grants and patent applications, results show that increases in innovative activity spur informal entrepreneurship. The effects of innovation on the overall shadow economy are insignificant. Further, general improvements in government effectiveness seem more effective in checking the underground sector than specific initiatives related to minimum wages or taxes. Transition countries, ceteris paribus, have lower informal entrepreneurship, but higher overall underground economy. Copyright Springer Science+Business Media New York 2015

Keywords: Innovation; Patents; Informal entrepreneurship; Underground economy; L26; O39; K4 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10961-015-9420-0 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jtecht:v:40:y:2015:i:5:p:800-820

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10961/PS2

DOI: 10.1007/s10961-015-9420-0

Access Statistics for this article

The Journal of Technology Transfer is currently edited by Albert N. Link, Donald S. Siegel, Barry Bozeman and Simon Mosey

More articles in The Journal of Technology Transfer from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().