Effects of innovative entrepreneurship and the information society on social progress: an international analysis

Abstract

The effects of entrepreneurship and information and communication technology (ICT) on countries’ development have been extensively studied, mainly from the perspective of their contributions to economic growth. However, from the human development paradigm, economic income is only resource helping people satisfy their economic needs. This study provides new evidence to bridge the gap in our understanding of how entrepreneurship and ICT improve the quality of people’s lives. To achieve this goal, we use the capabilities approach as a theoretical framework. The empirical analysis was conducted using ordinary least squares with a sample of countries to provide evidence that innovative entrepreneurship, as measured by the Global Entrepreneurship Monitor, has a positive relationship with human development, as measured by the Social Progress Index. The results show that ICT, as measured by the Networked Readiness Index, is positively related to social progress, indicating that ICT is a tool that helps people improve their ability to lead the life they desire. Finally, we find that ICT boosts the positive effect of innovative entrepreneurship on social progress, and thus, that enhancing ICT, and with it, entrepreneurial innovation activity, improves the quality of life.