Abstract
Which kind of government intervention is needed to transform scientific and technological knowledge into innovative nascent entrepreneurship? We answer this question by drawing upon the knowledge spillover theory of entrepreneurship and institutional theory. We empirically examined the moderating effect of government intervention on the relation between knowledge and innovative nascent entrepreneurship with cross-country panel data on 47 countries from 2002 to 2012. Our results first show that a smaller government sector is required to transform technological knowledge into innovative nascent entrepreneurship. In addition, we found that a larger government sector and more regulation of credit, labor, and business increase the transformation of scientific knowledge into innovative nascent entrepreneurship. We contribute to understanding the role of government in transforming scientific and technological knowledge into innovative nascent entrepreneurship.
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