Entrepreneurship, Higher Education and R+D in Mexico

Abstract

This research determines the impact of some higher education and R+D variables on different entrepreneurship outcomes in the states of Mexico during the period 2007-2017.  By applying panel data analysis tracking the Mexican states over time and specifying an entrepreneurship model, the research shows that these variables affect the entrepreneurial outcomes heterogeneously depending on the type of venture; in particular, higher education and R+D variables are not significant in explaining entrepreneurship in general but most of them are significant in explaining higher education and knowledge based entrepreneurship. These results harmonize with the perspectives suggesting the important role of the higher education and R+D system in supporting entrepreneurship. Nevertheless, the results also underline the lack of relation of entrepreneurship with patents, posing questions on the degree of innovativeness of the ventures and the commercial use of inventions, the unequal distribution of higher education and R+D activities across states and the limited scope of the public policy efforts as to impact overall entrepreneurship.