This paper introduces a special issue from the 3rd Global Entrepreneurship Monitor (GEM) Research Conference, focusing on the relationship between entrepreneurship, economic development, and institutions. It discusses three stages of economic development: factor-driven, efficiency-driven, and innovation-driven. The paper examines how these stages influence entrepreneurship and highlights the importance of institutions in shaping entrepreneurial activity. It also presents a summary of the papers in the special issue, emphasizing the role of entrepreneurship in economic development and the need for policy considerations based on local institutional contexts. The paper outlines the stages of economic development and their implications for entrepreneurship. In the factor-driven stage, entrepreneurship is driven by low-cost production and self-employment. In the efficiency-driven stage, entrepreneurship is influenced by production efficiency and workforce education. In the innovation-driven stage, entrepreneurship is characterized by innovation and growth. The paper also discusses the relationship between entrepreneurship and economic development, noting that in the efficiency-driven stage, entrepreneurship may have a negative relationship with economic development, while in the innovation-driven stage, it is positively related. The paper also addresses the challenges of comparing entrepreneurship across countries, noting that traditional measures may not capture the nuances of different economic contexts. It highlights the importance of using comprehensive measures, such as the Complex Entrepreneurship Context Index (CEC), to better understand the relationship between entrepreneurship and economic development. The paper concludes that entrepreneurship plays a crucial role in economic development, and that policies should be informed by the dynamics of entrepreneurship and the institutional context. The special issue papers provide insights into the factors influencing entrepreneurship, including institutional arrangements, economic development, and the role of export-oriented entrepreneurship. The papers also emphasize the importance of entrepreneurship education and training in fostering entrepreneurial activity and economic growth.This paper introduces a special issue from the 3rd Global Entrepreneurship Monitor (GEM) Research Conference, focusing on the relationship between entrepreneurship, economic development, and institutions. It discusses three stages of economic development: factor-driven, efficiency-driven, and innovation-driven. The paper examines how these stages influence entrepreneurship and highlights the importance of institutions in shaping entrepreneurial activity. It also presents a summary of the papers in the special issue, emphasizing the role of entrepreneurship in economic development and the need for policy considerations based on local institutional contexts. The paper outlines the stages of economic development and their implications for entrepreneurship. In the factor-driven stage, entrepreneurship is driven by low-cost production and self-employment. In the efficiency-driven stage, entrepreneurship is influenced by production efficiency and workforce education. In the innovation-driven stage, entrepreneurship is characterized by innovation and growth. The paper also discusses the relationship between entrepreneurship and economic development, noting that in the efficiency-driven stage, entrepreneurship may have a negative relationship with economic development, while in the innovation-driven stage, it is positively related. The paper also addresses the challenges of comparing entrepreneurship across countries, noting that traditional measures may not capture the nuances of different economic contexts. It highlights the importance of using comprehensive measures, such as the Complex Entrepreneurship Context Index (CEC), to better understand the relationship between entrepreneurship and economic development. The paper concludes that entrepreneurship plays a crucial role in economic development, and that policies should be informed by the dynamics of entrepreneurship and the institutional context. The special issue papers provide insights into the factors influencing entrepreneurship, including institutional arrangements, economic development, and the role of export-oriented entrepreneurship. The papers also emphasize the importance of entrepreneurship education and training in fostering entrepreneurial activity and economic growth.