The Impact of Generative Artificial Intelligence on Entrepreneurship and Innovation in AI-Driven Economies: A Study on Support for AI-Based Startups, Technology Transfer and Innovation Ecosystems

Abstract

Generative Artificial Intelligence (AI) has become a significant catalyst for the transformation of entrepreneurship and innovation in economies characterised by advanced AI integration. Although substantial research has examined the technical capabilities and sectoral applications of generative AI, there remains a notable gap in the literature regarding its integrated impact on entrepreneurship, particularly how it supports the proliferation of AI-based startups, facilitates technology transfer, and fortifies innovation ecosystems within AI-driven economies. Most existing studies address these themes in isolation or focus on technical outcomes, lacking a comprehensive exploration of the interconnected mechanisms at play. This paper rigorously examines the multifaceted impact of Generative AI, with particular attention to its role in supporting AI-based startups, facilitating technology transfer, and cultivating robust innovation ecosystems. Employing a comprehensive literature review and empirical analysis, this study elucidates the processes by which Generative AI shapes entrepreneurial activity and drives innovation within contemporary economic frameworks. The analysis encompasses a critical discussion of the core attributes of Generative AI, illustrating its capacity to redefine economic structures through technological advancement. Furthermore, the research evaluates the mechanisms through which Generative AI enables the development of AI-based startups, supported by detailed case studies that demonstrate its pivotal influence on emerging entrepreneurial ecosystems. The study also interrogates the role of Generative AI in technology transfer, considering its implications for innovation and technological advancement across diverse sectors. The findings contribute nuanced insights into the transformative effects of Generative AI, delineating its capacity to reconfigure entrepreneurial strategies, stimulate innovation, and impact the broader economic landscape of AI-intensive societies.