Reverse knowledge spillover theory of public sector entrepreneurship

Abstract Existing research has emphasized that public sector knowledge is conducive to stimulating entrepreneurship. This article shifts the focus and extends the Knowledge Spillover Theory of Entrepreneurship (KSTE) by introducing a theoretical framework for reverse knowledge spillovers (RKS), which explores how private sector knowledge catalyzes entrepreneurial activity within the public sector. Drawing on KSTE, open innovation theory, and public sector entrepreneurship literature, we delineate key elements of RKS (such as actors, types of innovation, dimensions of proximity, and transfer mechanisms), and examine the relationships between these elements. This study highlights the practical and policy implications of RKS, advocating for more dynamic interactions between private and public sectors. By fostering these interactions, this research aims to inform strategic management and policy-making, ultimately strengthening and enhancing entrepreneurial ecosystems.