The results from regression equation [1] confirm that entrepreneurship has a significant impact on economic growth as has been generally established. The regression for business entry rate (equation [2]) shows that the presence of entrepreneurship in a society cannot be completely explained by the traditional
neoclassical factors that influence economic growth. Consequently, entrepreneurship should be included as an independent factor in the neoclassical model for economic growth. One of the themes in this paper has been that entrepreneurship causes economic growth by fostering innovation within a given society. Interestingly, the only factor significantly interacting with entrepreneurship was research and development spending, itself reflective of innovation (van Praag and Versloot, p. 354). It should be noted, however, that
R&D spending is not a perfect indicator of the level of innovation in a society. For instance, a simple measure of R&D spending makes no allowance for how innovative a given research project is (e.g., if the research project focuses on entirely new technology or on simply making minor improvements to existing
technology). Indeed, it is difficult to conceive of any quantifiable way in which innovation would be measured with complete accuracy.