ABSTRACT
This chapter analyzes the concept of economic complexity within the context of economic theory and describes the effect of economic complexity upon entrepreneurial activity. It presents the concept of complexity and discusses it within the context of economic theory. The chapter shows the theoretic interconnection between economic complexity and entrepreneurial activity. It describes the relation between the index of economic complexity and several variables that represent entrepreneurial activity to ascertain whether these hypotheses are confirmed or not. Neoclassical economics were greatly influenced by the principles of physical science in the late nineteenth century and especially the idea that a great number of interacting identical elements could be objectively analyzed via simple mathematical equations. Depending on the individual’s motive in order to enter the business world, entrepreneurship is differentiated into necessity-motivated entrepreneurship and improvement-driven opportunity entrepreneurship. Economic complexity is estimated by how composite is a country’s base of production and reflects the structures emerging to maintain and combine knowledge.
