ABSTRACT
This chapter addresses the relationship between innovation and knowledge-based entrepreneurship (KBE). Innovation has played a high profile role on both research and policy agendas in recent decades. A large consensus on its importance to economic growth and development emerged and there is now widespread acceptance that countries and regions must foster innovation in order to generate growth and improve their overall wellbeing. In parallel agreement also exists on the economies’ reliance on entrepreneurship as a driver of the structural change that is needed to remain competitive in the long term. Nevertheless, the research on entrepreneurship points out that the contribution of new firms for such long-term dynamics varies in accordance to their knowledge intensity. Thus the focus of the analysis on the impact of KBE in innovation.
