The Role of Entrepreneurship and Innovation in Economic Development, A look at Ireland and Taiwan.

• Main Authors: O Brien Rachel Teresa, 歐瑞秋
• Other Authors: Benjamin Yuan
• Format: Others
• Language: en_US
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/99609578734357635300

碩士 === 國立交通大學 === 科技管理研究所 === 96 === Entrepreneurship involves mobilizing resources in pursuit of opportunities in the founding of new businesses (Aldrich, 1990). Entrepreneurs and small business owners add to the innovation of an economy therefore initiating entrepreneurship is key to the level of economic growth in terms of productivity and per capita incomes (Acs, Carlsson and Karlsson, 1999). This paper aims to look at two successful economies Ireland and Taiwan, and analyze the driving forces behind the success of each economy by looking at the entrepreneurial behavior and innovation in society using modified elements of Porter’s Diamond. Entrepreneurship is well accepted as an important contributor to economic growth, employment, innovation and competitiveness. Studies have attempted to explain the creation of new ventures from a number of different theoretical perspectives such as economics (Brenner, 1987), psychology (Katz, 1992; Bird; 1992) and population ecology (Aldrich, 1990) while these perspectives are different they share some common characteristics. Such as agreeing that a business opportunity will result in some value focused on the individual entrepreneur, secondly the circumstances or environment that supports business venturing and the timing of the events involved in the process is important, thirdly that the venture creation process differs depending on the types of ventures, i.e., technology-based or non-technology-based. Wennekers and Thurik (1999) attribute economic growth through entrepreneurship to three main processes or entrepreneurial activities, enhanced competition, innovations, and employment growth through firm start-ups. Knowledge and flexibility are also described as key factors in entrepreneurship, knowledge is a factor of production characterized by uncertainty and the flexibility of the entrepreneur becomes the ability to adapt to changes in the economy. Policy makers on the island of Ireland and the island of Taiwan have increasingly focused on the importance of fostering innovation and an environment that is supportive to entrepreneurship. This report looks at the two successful innovative countries; Ireland and Taiwan and how they compare in different areas of innovation and entrepreneurship. In 2007 Ireland’s market growth reached 5% while Taiwan’s rose to 5.5%. This shows the opportunities that have been created and the effort the government is putting in to achieve the goal of moving into a more knowledge based economy. Both countries have shown immense competitiveness and forward thinking and continue to make provisions to evolve and improve. Ireland aims to use its knowledge for economic and social progress within an innovation driven economy and is planning to become internationally renowned for the excellence of its research. Similarly Taiwan’s plan to become more innovative has been spurred on by its incredible levels of competitiveness and forward thinking. Both countries can attribute much of their success to the strength of their education, research, innovation, strength of human capital and positive attitude to strive for success.