Is entrepreneurship a key factor in the development of European countries? A proposal for an innovation readiness environment (IRE) index

This study investigates the complex interplay among innovation,
research and development (R&D), and entrepreneurship within the
context of European nations. The focus of the study is also on the
contributory role of tertiary educational institutions in nurturing
entrepreneurial activities. To deepen the understanding of these
multifaceted relationships and their subsequent impact on regional
economies, the research introduces a novel metric termed the
Innovation Readiness Environment (IRE) index. This index combines
various indicators such as R&D expenditure, patenting rates, firm size,
and educational levels, thereby providing a framework for evaluating
the innovative capabilities and entrepreneurial success of firms in a
given region. Utilization of this index offers policymakers and
stakeholders a nuanced understanding of the regional innovation
ecosystem, facilitating the identification of both strengths and
deficiencies. This, in turn, enables the formulation of targeted policy
interventions to enhance both innovation and entrepreneurship. One
salient conclusion drawn from this study is the pivotal role of tertiary
education in catalysing entrepreneurial ventures. The findings posit
that higher levels of entrepreneurial education significantly
supplement an individual's likelihood of entrepreneurial success by
imparting the requisite skills and knowledge indispensable in a
competitive business milieu. Higher education institutions, by fostering an environment conducive to innovation, emerge as critical
agents in the cultivation of entrepreneurial acumen and the
stimulation of economic expansion. The study further incorporates a
spatial analytical framework to elucidate the regional specificities of
innovation at the pan-European scale.