Effect entrepreneurship on innovation behavior and institutional environment: based on a comparative analysis

Abstract To establish a basic model to evaluate the effect of entrepreneurship upon the organizational innovation, applying transaction costs and intellectual property right protection as institutional moderating variables. By collecting data from GEM’s investigation, the dynamic connection between the entrepreneurship and innovation decision was explored and the differences in terms of innovation’s motivations were statistically compared between the North and emerging countries. The entrepreneurship exerted positive effect on entrepreneurs’ innovation decision. The decrease of transaction costs had positive moderating effect. With subsequent comparative analysis, the transaction costs exerted larger moderating effect, whereas intellectual property right protection had negative moderating effect in emerging countries. Individualized policy implications should be proposed according to the specific situations in emerging countries, which include adapting regional incubator, building information communication platform as well as applying appropriate intellectual property right protection.