The effects of FDI on innovative entrepreneurship: A regional-level study

A growing number of studies report findings on FDI's impacts on entrepreneurship activities in the host country, but less attention is given to the question of how FDI spills over to different types of entrepreneurship. This study empirically tests how FDI innovation activities influence innovative entrepreneurship entry and growth. Fixed-effect panel data analysis was applied to examine original field data from multiple official databases in China in 31 provinces from 1998 to 2007. The study shows that FDI innovation activities increase innovative entrepreneurship entry. The relationship is positively moderated by IPR protection. Moreover, FDI innovation activities also promote entrepreneurial growth. These findings contribute to a better understanding of dissimilar FDI spillovers to different entrepreneurship types. Such insights help expand the theoretical and practical research of FDI spillover on entrepreneurship from entrepreneurship as a whole to the attributes and processes of entrepreneurship.