KNOWLEDGE ECONOMY, INNOVATION AND ENTREPRENEURSHIP: AN INTEGRATED CONCEPTUAL FRAMEWORK FOR ECONOMIC GROWTH

Abstract

In the context of the transition towards knowledge-based economies, innovation and entrepreneurship have become more important for sustaining economic growth and competitiveness. There has been much written about innovation, entrepreneurship and the knowledge economy as individual entities, but there has been less research that has integrated the three into a single system as these work together. Existing studies have largely concentrated on partial relationships, e.g., innovation and firm performance, entrepreneurship and economic growth, but less attention has been directed to the dynamic and mutually reinforcing relationships between knowledge creation, innovation capability and entrepreneurship. Based on the latest theory and empirical research, this conceptual paper proposes a holistic framework to outline the link between innovation, entrepreneurship and the knowledge economy. The paper proposes that the knowledge economy creates the underpinning environment by way of education systems, digital infrastructure, human capital and institutional support that allows for the generation and utilization of knowledge. In this context, innovation processes are the process of developing new products, services and processes based on knowledge, and entrepreneurship is the process of commercialization of innovations to generate economic value. The research also suggests that innovation and entrepreneurship are in a continuous reinforcing cycle, which is important for improving productivity, competitiveness, employment creation and sustainable economic transformation. The paper offers a theoretical basis for an integrated empirical study and policy development for knowledge economies in the future by combining these concepts in one conceptual model.

Keywords: Digital Transformation, Entrepreneurship, Economic Growth, Innovation, Knowledge Economy.