Entrepreneurial activity in an environment of digital transformation: an analysis of relevant factors in the euro area

Abstract

AbstractThe main feature of the current business reality is the speed of the changes in the environment and the uncertainty they generate. Among these changes, those which stand out for their importance are the ones related to the current digital revolution, which is changing, in a very short period of time, the companies’ business models. From this perspective, and based on panel data for the 2009–2020 period, the study seeks to examine in depth the technological and innovative factors which are related to the entrepreneurial density in euro area countries, with special emphasis on self-employed entrepreneurs. The results obtained show that greater robotization of industrial activities generates entrepreneurial opportunities, while investment in R&D by companies is negatively related to entrepreneurial activity. It is also noteworthy that public investment in R&D and the greater volume of employment in scientific-technological sectors has not been significant in the generation of entrepreneurial opportunities. These conclusions make it possible to identify economic policies to promote entrepreneurial activity, such as training and the generation of a favorable environment for digital innovation and artificial intelligence, but also the incentive for intrapreneurial activity in companies that invest in R&D.