INSIGHTS FROM THE GLOBAL INDEX OF DIGITALENTREPRENEURSHIP SYSTEMS Erkko Autio, Yothin Jinjarak, Éva Komlósi, Donghyun Park, László Szerb,and Mónika Tiszberger ADB ECONOMICSWORKING PAPER SERIES ADB Economics Working Paper Series Digital Entrepreneurship Landscapes in Developing Asia:Insights from the Global Index of DigitalEntrepreneurship Systems Erkko Autio, Yothin Jinjarak, Éva Komlósi,Donghyun Park, László Szerb,and Mónika Tiszberger Erkko Autio (erkko.autio@imperial.ac.uk) is a professorand Chair in Technology Venturing at Imperial CollegeBusiness School. Éva Komlósi (komlosieva@ktk.pte.hu) is a research fellow, László Szerb (szerb.laszlo@ktk.pte.hu) is a professor, and Mónika Tiszberger(tiszbergerm@ktk.pte.hu) is an associate professor atthe University of Pécs. Yothin Jinjarak (yjinjarak@adb.org) is a senior economist at the East Asia Departmentand Donghyun Park (dpark@adb.org) is an economicadvisor at the Economic Research and DevelopmentImpact Department, Asian Development Bank. No. 720 | April 2024 TheADB Economics Working Paper Seriespresents research in progress to elicit commentsand encourage debate on development issuesin Asia and the Pacific. The views expressedare those of the authors and do not necessarilyreflect the views and policies of ADB orits Board of Governors or the governmentsthey represent. Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2024 Asian Development Bank6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 8632 4444; Fax +63 2 8636 2444www.adb.org Some rights reserved. Published in 2024. ISSN 2313-6537 (print), 2313-6545 (electronic)Publication Stock No. WPS240095-2DOI: http://dx.doi.org/10.22617/WPS240095-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policiesof the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for anyconsequence of their use. The mention of specific companies or products of manufacturers does not imply that theyare endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area in this document, ADB does notintend to make any judgments as to the legal or other status of any territory or area. This publication is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be boundby the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisionsand terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributedto another source, please contact the copyright owner or publisher of that source for permission to reproduce it.ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact pubsmarketing@adb.org if you have questions or comments with respect to content, or if you wishto obtain copyright permission for your intended use that does not fall within these terms, or for permission to usethe ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. ABSTRACT Digitalization transforms how entrepreneurs pursue opportunities. To understand thistransformative impact on entrepreneurship, we present the Global Index of DigitalEntrepreneurship Systems (GIDES), a composite indicator developed to assess theperformance of the digital entrepreneurial ecosystem at the national level. To addressexisting conceptual gaps, GIDES concurrently monitors the general, structural and digitalframework contexts supporting digital entrepreneurship. The digital framework conditions,describing the general level of digitalization of the economy, affect entrepreneurial activitythrough their impact on general and systemic framework conditions. Unlike traditionalentrepreneurship or most entrepreneurial ecosystem measures, GIDES takes a systemicapproachutilizing the Penalty for Bottleneck(PFB)algorithm to spot bottlenecksconnecting elements that could potentially degrade overall system performance. WithGIDES, we provide a measure of the digital transformation of entrepreneurship forpolicymakerswho want to improve the quality and productivity potential of theentrepreneurial resource allocation dynamic in their countries. For illustration, GIDESprofiles the digital entrepreneurship systems of 113 countries, with a special focus on 21in developing Asia. Keywords:entrepreneurship,digitalization,digital entrepreneurship ecosystem,composite indicator, GIDES, Asian developing countries JEL codes:L26, O32, O33, O57 1. Introduction Digital t