The influence of knowledge-based innovation on entrepreneurial outcomes

The main purpose of this paper is to investigate the relationship between knowledge-based innovation in an economy and new firm creation or company bankruptcy, as outcomes of the entrepreneurial process. Based on panel estimations for 16 regions in Poland, each of six years (2003-2008), the research hypotheses of a positive influence of innovation resources on new firm creation and company bankruptcy were tested. Research results indicate that the increasing rate of academic teachers in a society and the expenditure on R%D are positively correlated with the increasing level of start-ups and bankruptcies, while the increasing rates of students and people working in R%D in a society are negatively correlated.