Nonlinear Relationship Between Technological Entrepreneurship and National Competitiveness: The Moderation Effect of Innovation-driven Economy

Based on the Knowledge Spillover Theory of Entrepreneurship, this study analyzes the relationship between technological entrepreneurship and national competitiveness. It also analyzes how innovation-driven economy moderates this relationship. Using data on technological entrepreneurship, national competitiveness indexes and economy development stages from 83 countries over 2011 to 2014, this study finds that a ratio of technology-based start-ups in a country has a U-shaped relationship with national competitiveness. this study also finds that countries that are in the innovation-driven economy strengthen this relationship. This finding shows that a higher ratio of technology-based start-ups of a country does not have unconditional positive effects on national competitiveness, thus, related environments and conditions should be elaborately matched. In particular, this finding also implies that policies related to technology-based start-ups should have a proper fit with the level of economic development of the country so that the positive effects of technological entrepreneurship on national competitiveness can be strengthened.