Nations' share of innovative entrepreneurs : financial systems to the rescue in difficult institutional settings

With much of the literature declaring little role for fnancial systems in boosting a nation's share of innovative entrepreneurs, this study argues that fnancial systems play an important role when other parts of the national business systems -skills and government- are weak. This argument is supported by an analysis of a panel data set comprising 283 country-year data over fve years. Overall, this research contributes to a stream of research about the context for entrepreneurial aspirations or entrepreneurship quality. The study empirically confrms an idea seldom tested: the interplay required between systems components, such as institutions, to increase national innovative capacity.