1. Global Entrepreneurship and Development Index: Policy Applications Erkko Autio, Professor QinetiQ-EPSRC Chair in Tech Transfer and Entrepreneurship

2. Erkko Autio Integrating 3.5 Billion People in the World Economy Perception of opportunity: Attitudes Do people recognise opportunities for economic action and do they have the skills to address them? Accessibility of opportunity: Activities Are people able and allowed to access opportunities and mobilise the resources necessary for their pursuit? Mobilisation of opportunity: Aspirations Are people able and willing to convert the opportunity into economic value added? These challenges are the same for both rich and poor countries, although the bottlenecks differ in different contexts

3. Erkko Autio GEDI Definition of National Entrepreneurship ”Entrepreneurship is the dynamic interaction of entrepreneurial attitudes, entrepreneurial activity and entrepreneural aspirations” (Acs & Szerb, 2010) This dynamic is embedded in a given institutional framework and drives productive entrepreneurship Attitudes AspirationsActivities Productive Entrepreneurship

4. Erkko Autio GEDI: Basic Features Measures National [Productive] Entrepreneurship National Entrepreneurship is the dynamic interaction between Attitudes, Activities and Aspirations In addition to outputs, GEDI covers the processes that drive the outputs GEDI exposes countries’ strengths and weaknesses relative to peers and informs on how to remedy weaknesses Attitudes AspirationsActivities Productive Entrepreneurship

5. Erkko Autio Index Composition Attitudes AspirationsActivities Productive Entrepreneurship Opportunity perception Startup skills Nonfear of failure Cultural support Risk capital Internationalisation High-growth ambition New technology New products Competition Quality of human resources Technology sector Opportunity start-ups

6. Erkko Autio Entrepreneurship Index Types Output-based E.g., Global Entrepreneurship Monitor’s Total Early-Stage Activity rate (percentage of working-age population currently trying to start or operating new entrepreneurial ventures) Measures actual activity Challenge: distinguishing between types of entrepreneurship Process-based E.g., World Bank Ease of Doing Business index Focus on tangible regulations related to start-up creation Challenge: do not inform on level and quality of entrepreneurial activity Qualitative (policy) indices E.g., OECD; Nordic Entrepreneurship Monitor Ranking of specific policy areas Challenge: linking entrepreneurial activity with institutional conditions

7. Erkko Autio GEDI Index Construction Aspects of the entrepreneurial process derived from the GEM data Process measures weighted with institutional descriptors Penalty for Bottleneck philosophy (focus on the weakest link) Because entrepreneurship is dynamic interaction, the weakest link holds back performance Individual variables Institutional variables Pillars (Indicators) OPPORTUNITYxMARKETAGGLOM=OPPORTUNITY PERCEPTION SKILLxEDUCPOSTSEC=STARTUP SKILLS NONFEARxBUSINESS RISK=NONFEAR OF FAILURE KNOWENTxINTERNETUSAGE=NETWORKING CARSTATxCORRUPTION=CULTURAL SUPPORT Example of the Entrepreneurial Attitudes Index

8. Erkko Autio Analysis of Nordic Countries

9. Erkko Autio Finland Country Analysis

10. Erkko Autio Finland Country Analysis

11. Erkko Autio Finland vs Singapore

12. Erkko Autio Nordic Countries vs the US

13. Erkko Autio Advantages for Policy Design Focuses attention on bottlenecks Performance comparisons relative to relevant peers In addition to bottlenecks, also indications on how much to improve

14. GEDI INDEX The Global Entrepreneurship and Development Index GEDI is a collaboration between George Mason University, University of Pécs, and Imperial College Business School, London. The GEDI Index combines Global Entrepreneurship Monitor (GEM) data with data on country-level institutional conditions to estimate a country’s Entrepreneurial Attitudes, Aspirations, and Activities. Combined, these three pillars define the entrepreneurial character of a nation. Each of the three pillars – Attitudes, Aspirations, and Activities – comprises several sub-pillars, such as Opportunity Perception, Cultural Support, Opportunity Start-Ups, Growth Aspirations and New Technology. For the GEDI method, see www.thegedi.org.

15. Erkko Autio Will He See Opportunity?