Development Paths in the Knowledge Economy: Innovation and Entrepreneurship in Greece

Abstract

This paper examines the development paths of Greece, as these are reflected in different regions of the country. It adopts the theoretical framework of Business Knowledge Society, which is both an extension and reformulation of both the neoclassical growth function and the endogenous growth function. The validity of the model of Business Knowledge Society in Greece is investigated through the effect of the stock of physical capital and labor, human capital, knowledge capital, and venture capital in the resulting product of each region. The results of this paper show that entrepreneurship capital exerts a strong positive impact on the region’s economic output. It is implied that investments in entrepreneurship capital are more productive compared with investments in knowledge capital.