Innovative ability and entrepreneurial activity: two factors to enhance “quality of life”

Abstract

Purpose– The purpose of this paper is to investigate the impact of aspects of knowledge economy covered by the Knowledge Economy Index [KEI] and aspects of entrepreneurial activity covered by the Global Entrepreneurship Index [GEI] on quality of life [QOL] in a country.Design/methodology/approach– Data pertaining to KEI, GEI and QOL for different countries were gathered and analyzed through correlation and regression analyses.Findings– The results of the analysis yielded two key findings: First, KEI and GEI have a significant effect on QOL. Second, the Innovation Index (a component of KEI) and the total early stage entrepreneurship (a component of GEI) emerge as key factors that improve QOL.Originality/value– The value of this research lies in the fact that it unearths the two factors in KEI and GEI that actually impact QOL. By establishing and reinforcing the salience of innovative ability and entrepreneurial activity, this research helps long-term planners of an economy to fine-tune their focus.