Page 74 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.83, # 1, 2026, pp. 58-81

where entrepreneurs have the tools, resources, and support to thrive. Investing in
innovation-driven knowledge systems ensures that digital ventures not only emerge
but also sustain and scale in a nurturing ecosystem.
On the other hand, ICT exports, although beneficial to the economy, seem to hinder
local digital entrepreneurship in the absence of domestic capacity-building. On the
same note, financial risk negatively impacts early-stage ventures by introducing
uncertainty into the investment and operating environment. To some extent, these
results conflict with the previous literature, which stressed the entirely positive
influence of ICT exports (e.g., Alderete, 2014). Nevertheless, the present paper aligns
with Plecko et al. (2023), who also reported potential drawbacks in the absence of
local entrepreneurial ecosystem support for ICT development.
Also, the positive impact of R&D and researcher activity on previous studies by
Cantwell & Salmon (2018) and Orlandi et al. (2020), which point to the importance
of human capital and knowledge infrastructure in promoting innovation-based
startups. The positive influence of existing businesses and GDP confirms previous
studies (Zahra et al., 2023; Azwardi et al., 2023), and the negative impact of financial
risk replicates that of Afawubo & Noglo (2022).

The current study examines the key factors influencing digital entrepreneurship
in OECD countries. The current study analyses how digital entrepreneurship is
affected by internet usage, ICT, R&D, and the number of researchers in R&D,
while also considering the role of established businesses, financial risks, and
GDP. Findings show that internet use and R&D investment play a positive role
in boosting digital entrepreneurship, emphasizing the importance of technology
and innovation. However, ICT exports and government spending on R&D have
a negative impact, suggesting that export-driven models and certain government
policies may not always support digital ventures. Additionally, it was found that
a strong presence of established businesses and a growing economy (GDP)
encourages digital entrepreneurship. On the other hand, financial risks negatively
affect entrepreneurship, highlighting the importance of proper risk management.
This research investigates what elements determine digital startup growth in
Organization for Economic Cooperation and Development nations. The study
examines digital start-ups using key factors like ICT networks, internet
connectivity, research and development investments, plus the organization of
researchers. And study observe these effects with established firms, national
income, and economic danger. Results prove that both increased internet access
and more research and development produce additional digital business growth.
ICT exports plus government R&D funding hurt digital venture development

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