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Start-ups are counted as ‘engine’ for innovation, especially in developing countries. However, in developing countries, bureaucratic barriers and costs are main impediments for start-ups. In this paper, the main barriers and costs are examined within panel data analysis framework in the developing countries indicating whether there are barriers and...
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Numerous empirical studies have documented the evidence of institutional significance towards economic growth. This study extends such evidence as it examines the link between institutions and growth in developing countries including East Asian region. By using neoclassical growth framework augmented with institutional controls and latest estimatio...
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... Without adequate financial backing, the implementation of any initiatives or plans would not be feasible, as noted by the respondents during the interview. (Doruk & Söylemezoğlu, 2014). An ongoing factor noted by respondents is the passive role of municipalities (16.49%), which further weakens the regulatory environment. ...
As global conflicts and hostilities become more prevalent, it is essential to investigate the conditions necessary for the operation and growth of innovative enterprises considering post-war recovery. The paper aims to determine crucial favorable conditions for activating innovative entrepreneurship and startups in the post-war period in Ukraine. The analysis is based on inductive, qualitative data from 24 interviews with the respondents from Ukraine and the Netherlands (eight scientists, ten startup founders and entrepreneurs, two government officials, and four entrepreneurs) to identify a range of favorable factors by utilizing qualitative analysis. The paper used individual, in-depth, semi-structured interviews. The study identified eight constraining aggregate themes (the consequences of war, policy and regulatory system, market and investment, the ecosystem, passive universities, education and skills, internationalization, and culture) and three enabling aggregate themes (the consequences of war, active universities, and the ecosystem) through the grouping of factors from the second-order code. The most significant constraining factor from aggregate themes “the consequences of war” is brain drain (40.63%). Among the eight constraining aggregate themes, 32.55% identified the policy and regulatory system as the main obstacle due to the absence of an effective strategy, ineffective legislation, passive municipalities, and bureaucracy. Moreover, the lack of funds is a critical issue in addressing the consequences of the war, financing startup projects, and creating favorable conditions. The results emphasize constraining and enabling conditions for activating innovative entrepreneurship and startups. Such results are helpful for policymakers to improve the conditions for startup development by overcoming the immediate identified obstacles. AcknowledgmentThe publication was prepared in the framework of the MSCA4Ukraine postdoctoral fellowship (Oksana Khymych Ref.№ UKR 1233171), which is funded by the European Union that provides support and funding for the Ukrainian researchers displaced by the war, while the Consortium (a consortium comprised of Scholars at Risk Europe hosted at Maynooth University, Ireland (project coordinator), the German Alexander von Humboldt Foundation (AvH) and the European University Association (EUA)) is a collaborative network of institutions managing and implementing this initiative. The views and opinions expressed in this report are solely those of the authors and do not reflect the views of the European Union or the MSCA4Ukraine Consortium. Neither the European Union, the MSCA4Ukraine Consortium, nor any individual member institutions of the Consortium can be held responsible for these views and opinions. We would like to express our sincere gratitude to the colleagues at Vrije Universiteit Amsterdam for their invaluable support in conducting the research and for fostering an environment conducive to academic excellence and innovation.
... Despite these challenges, there have been some notable developments in the Bangladeshi startup ecosystem. The government has launched initiatives such as the Startup Bangladesh program, which aims to provide funding, mentorship, and support to startups (Bhuiyan & Ivlevs, 2019;Doruk & Söylemezo glu, 2014). Additionally, international VC firms and development finance institutions have shown increasing interest in the Bangladeshi market, recognizing its potential for growth and innovation (Samara & Terzian, 2021;Wilton, 2015). ...
Venture capital (VC) plays a vital role in fostering revolution and entrepreneurship in emerging economies. However, attracting VC investments remains a significant challenge for startups in these markets. This study investigates the macro and micro factors influencing VC attraction in the Bangladeshi startup ecosystem, employing a mixed‐methods approach. A systematic literature review was performed to recognize the key factors influencing VC attraction in emerging markets. Qualitative interviews with 20 stakeholders, including startup founders, investors, and policymakers, were undertaken to gain insights into the challenges and opportunities for VC attraction in Bangladesh. Quantitative analysis of secondary data on VC investments and startup characteristics was executed to examine the associations connecting the identified factors and VC investment amount. The findings reveal that government policies, human capital availability, and informal institutions are critical macro factors influencing VC attraction, while founder and team characteristics, business model and scalability, and traction and validation are key micro factors. The study contributes to the literature on VC in developing economies by providing a comprehensive examination of the interplay of institutional, human capital, cultural, and startup‐specific factors shaping VC investment decisions. The findings have important implications for policymakers, investors, and entrepreneurs seeking to foster a more vibrant and sustainable startup ecosystem in Bangladesh and beyond. The research underlines the need for a holistic approach to addressing the challenges and leveraging the opportunities for VC attraction in emerging markets.
... These models often follow a straight and methodical progression, wherein scientific and technological developments give rise to research and development (R&D) activities, which are subsequently translated into marketable innovations by enterprises (Cirera et al., 2020). However, despite being considered an important engine of innovation, bureaucratic obstacles and other external costs hamper available resources and become roadblocks to entrepreneurship, especially in developing countries (Ciambotti et al., 2023;Doruk & Söylemezoğlu, 2014). Many entrepreneurs are faced with the challenge of navigating an environment characterized by high levels of uncertainty and ambiguity. ...
Entrepreneurship promotes economic growth, particularly in developing economies where small and medium-sized enterprises (SMEs) are a significant source of employment and economic activity. However, SMEs in developing countries often face various resource constraints and weak institutions, forcing them to engage in entrepreneurial bricolage behavior by creatively combining existing resources. This study explores the relationship between entrepreneurial bricolage and product, process, and marketing innovation among SMEs in the Philippines. Logistic regression estimates reveal that entrepreneurial bricolage has a significant and positive impact on product, process, and marketing innovation. As entrepreneurial bricolage behavior increases, so does the probability of innovation, highlighting the importance of creative problem-solving in settings with inadequate resources. The study also emphasizes the need for policies that support SMEs by providing enabling resources, such as robust infrastructure and reliable communication platforms, to encourage firm innovation that fosters positive spill-over effects on the broader economy.
... Lack of fundings, low revenue generation, low scalability of workers, low venture capital and low infrastructure are creating barriers in the sustainability of start-up ecosystem in India. Existing studies identified following problems for low sustainability of start-up ecosystem in India: Barriers to entrepreneurship in India: Bureaucratic barriers, legal procedures and high costs are found significant constraints for start-ups and innovation in most developing countries (Doruk & Söylemezoğlub, 2014). Indian start-up ecosystem is facing several problems due to regulatory complexities, unsuitable market accessibility, and low talent acquisition. ...
This chapter analyzed the determinants and problems of the start-up ecosystem in India as per the existing literature. The number of start-ups increased at an unprecedented rate in India after 2016. India has the 3rd highest number of startups in the world. However, the success rate of start-ups is very low in India. The start-up ecosystem depends on education level, human skills, business experience, family background, and market potential. India needs to adopt the triple helix model to increase the sustainability of the startups. Technological change, financial constraints, low infrastructure, registration of new startup, low transfer of technology and commercialization, low venture capital, and global policies are creating obstacles to increase the progress of the startup ecosystem in India. The research institutions should set up TBIs and business development cells to attract the attention of entrepreneurs and investors in the start-up ecosystem of India.
... They concluded that R&D and patents positively affect economic growth but that R&D expenditures are four times more effective than patents on economic growth. Doruk and Söylemezoğlu (2014) investigated the relationship between R&D and GDP per capita in 22 developing countries in 2000-2007 with GMM and system GMM methods. As a result of the study, R&D expenditures positively affect GDP per capita. ...
... In the literature, technological development indicators such as R&D, innovation, developments in information technologies become prominent for high-tech product export and economic growth. According to the first group of studies, it is generally seen that R&D expenditures have a positive effect on economic growth (Lichtenberg, 1993;Freire-Seren, 1999;Sylwester, 2001;Zachariadis, 2004;Gülmez & Yarımoğlu, 2012;Gülmez & Akpolat, 2014;Doruk & Söylemezoğlu, 2014;Scott et al., 2017;Nair et al., 2020). However, Samimi and Alerasoul (2009) attributed the negative impact of R&D expenditures on economic growth to the low share of R&D expenditures in total expenditures in developing countries. ...
... They concluded that R&D and patents positively affect economic growth but that R&D expenditures are four times more effective than patents on economic growth. Doruk and Söylemezoğlu (2014) investigated the relationship between R&D and GDP per capita in 22 developing countries in 2000-2007 with GMM and system GMM methods. As a result of the study, R&D expenditures positively affect GDP per capita. ...
... In the literature, technological development indicators such as R&D, innovation, developments in information technologies become prominent for high-tech product export and economic growth. According to the first group of studies, it is generally seen that R&D expenditures have a positive effect on economic growth (Lichtenberg, 1993;Freire-Seren, 1999;Sylwester, 2001;Zachariadis, 2004;Gülmez & Yarımoğlu, 2012;Gülmez & Akpolat, 2014;Doruk & Söylemezoğlu, 2014;Scott et al., 2017;Nair et al., 2020). However, Samimi and Alerasoul (2009) attributed the negative impact of R&D expenditures on economic growth to the low share of R&D expenditures in total expenditures in developing countries. ...
... However, there are many perspectives from which to consider innovation. Doruk and Söylemezoğlu (2014) consider innovation to be the process by which a new idea becomes a commercial result. It can also be classified according to its degree of novelty, as radical or incremental (Abernathy and Clark, 1985;Dewar and Dutton, 1986;Nelson and Winter, 2000), Gunday et al. (2011) defines innovative performance as organisational achievements resulting from efforts to change and improve processes, products, and methods. ...
... As future research, it is suggested to explore whether the bureaucratic barriers encountered by Doruk and Söylemezoglu (2014) as crucial impediments to innovation in developed countries are present in developing countries' MSE. To consider the connection between innovation and economic growth pointed out by Pece, Simona and Salisteanu (2015) in the case of MSE. ...
Given the increasing complexity of the business environment, which has a considerable impact on Micro and Small Enterprises (MSE), innovation becomes the key to creating and maintaining competitive advantages, generating positive results for both companies involved in the process of innovation, and for the economy as a whole. The present research had as objectives to verify how the innovation presents itself in the MSE of the State of Piauí, to identify the determinants of innovation for the MSE of the interior and of the capital. In addition, it was intended to verify if there was an association between the geographical location and the innovation. For this, the study was based on a sample of 617 MSE distributed in six cities of the State of Piauí. The data were collected through the application of the Innovation Radar conducted by the Brazilian Micro and Small Business Support Service’s Local Innovation Agents program. Statistical techniques of descriptive, exploratory and multivariate nature were applied. The results showed that the MSE under studied has a capacity for innovation between “Little Innovative” and “Occasional Innovative”, and that the found innovation factors suggest the innovation is market driven rather than geographically as is commonly found in the literature on the subject.
Keywords: innovation; micro and small companies; GAII; management; Brazil.
... Market assets. Innovation needs convert new ideas into marketable outcomes (Doruk and Söylemezoğlu, 2014). Commercialization is essential for successful innovation (King et al., 1994;Van de Ven, 2005). ...
... Innovation is today understood as converting new ideas into marketable outcomes (Doruk and Söylemezoğlu, 2014). It ranges from the invention of radically new technologies to simple incremental additions to existing knowledge (Paradkar et al., 2015). ...
This paper explores the evolutionary mechanism of an innovation ecosystem by investigating how the case startup develops to initiate and lead one. The results reveal that the dynamic capabilities of the case company play a key role. They help the company acquire, renew and reconfigure resources to conquer its own development puzzles. This process naturally solves the stage challenges of the innovation ecosystem and advances its evolution. During the evolution, the social capital is an important antecedent of the dynamic capabilities. The paper enriches understandings of innovation ecosystems and dynamic capabilities. Such understandings can help enhance innovation efficiency in practice.
... Even though Max Weber considers bureaucracy as a rational type of administration significant for the achievement of positive results, studies has found long processes in starting up business as a challenge for development in developing countries. For instance, the study of Doruk and Söylemezo glu (2014) found bureaucracy and costs as major barriers for start-ups and innovation in developing countries. This risk is further Note: 1 Risk significance index for a category = sum of mean of factors in each category/total number of factors in category evidenced by the World Bank's Ease Of Doing Business Report, which essentially measures the processes required for an entrepreneur to formally start operations including the time and cost to conclude these procedures of selected economies. ...
Purpose
Sustained access to efficient electricity plays an essential role in improving living conditions of people and contributes to the economic development of the nation as a whole. Volta River Authority (VRA) mainly manages the generation plants (hydropower sources and thermal plants) alongside independent power producers (IPPs). Power generation in the country has been influenced by myriads of factors. Thus, the purpose of this study is to assess the key risk factors affecting renewable energy of IPPs set-up project in Ghana.
Design/methodology/approach
Quantitative approach was adopted for the study. Empirical investigation was carried out using the survey approach. The likelihood of occurrence of the risk and the degree of impact of same motivated the use of risk significance index to analyze the data and make deductions from the results.
Findings
From the study, three key risk factors have high level of severity, which include long and complex procedures for authorization of project activities, stability of the policy environment and ease of obtaining rights to land. These risks could be found in the business/strategic risks and policy/regulatory risks categories, respectively. A total of 25 key risk factors had moderate level of severity and 12 key risk factors have low level of severity on renewable energy IPP set up projects.
Practical implications
Top-ranked risk factors require maximum attention. The identified risks should be alleviated with strategies to reduce levels of severity by targeting either the likelihood of occurrence or the level of impact. This will serve as a catalyze to promoting renewable energy IPP set-up projects in Ghana.
Originality/value
Key contribution of the paper to the body of knowledge is demonstrated by the empirical evidence of the risks IPPs are likely to encounter in setting up renewable energy plants in Ghana. The distinctive attribute of this study is further demonstrated by the fact that it focused on the set-up stage, which is a critical stage in the renewable energy provision value chain.
