## 4 Results and Discussions
This result emphasises that the cross section fixed effects are statistically significant for _Model B_. \begin{table}
\begin{tabular}{c c c c c c c} \hline \hline \multirow{2}{*}{**Dependent**} & \multicolumn{2}{c}{**27 EU Countries**} & \multicolumn{2}{c}{**Innovation Countries**} & \multicolumn{2}{c}{**Transition Countries**} \\  & \multicolumn{2}{c}{**(OLS)**} & \multicolumn{2}{c}{**(Cross Section Fixed Effects)**} & \multicolumn{2}{c}{**(Cross Section Fixed Effects)**} \\ \cline{2-7}  & **Model A1** & **Model A2** & **Model B1** & **Model B2** & **Model C1** & **Model C2** \\ \hline Birth & 0.016 & - & **0.024 \({}^{**}\) & - & **0.010 \({}^{**}\)** & - \\  & (0.009) & - & (0.004) & - & (0.006) & - \\ \hline Death & - & \(\begin{array}{c}\mathbf{-0.021}  
The number of observations for _Model_\(C\) (targeting transition countries) allows us to run only the pooled OLS and fixed effects model. Applying the redundant fixed effects test shows that H0 is accepted (\(p\) values \(>\) 0.05) and that period fixed effects are redundant. As cross section and combined fixed effect \(p\) values are less than 0.05, we strongly rejected H0. Therefore, the cross section fixed effects are the best fit to this model. The results summarised in Table 5 emphasise that almost all the indicators measuring entrepreneurial performance significantly influence national competitiveness of EU countries. In addition, they highlight that the relationship between entrepreneurial performance and national competitiveness is different according to the economic situation of the analysed countries. Hypotheses 1 and 2 are thus confirmed. In the following, we analyse each indicator in turn. Thus, _enterprise birth rate_ has a positive relation with national competitiveness for all three models, but this relationship is statistically significant only when we consider the countries by groups (_Model B_ and _Model C_). This result is somewhat expected because an increase in the number of companies on the market puts the companies in a position to face competition. Therefore, they have to become more efficient, seeking to apply innovative processes, and to adopt new technologies to increase overall productivity, thus positively influencing national competitiveness. As shown in the literature [58; 59; 60], intense rivalry among enterprises, pressure and challenges are seen as significant factors for increasing national competitiveness. Creation of new enterprises on the market will cause enterprises to develop new skills but, at the same time, new entrants will bring a novel approach to competing. On the other hand, some studies [61] argue that the quality of the new enterprises created is as important as the quantity, maybe even more important. To ensure the increase in national competitiveness through new enterprise creation, it is necessary for a country to create the preconditions for enterprise growth: market share, innovation, technological progress, financial efficiency and sustainability of employment levels [22]. _The enterprise death rate_ has a negative relation with national competitiveness for all three models, but this relation is statistically significant only for _Models A_ and \(B\). Higher exit rates will determine a decrease in national competitiveness, because they will determine a reduction in the number of competitors. The companies remaining on the market will face less competition, not being motivated to invest as much in innovation, generating adverse effects on national competitiveness. For the transition countries, the indicator measuring enterprise death rates does not have a statistically significant effect on national competitiveness. As regards the _survival rate at 3 years_, our findings highlight a positive relation between this indicator and competitiveness for innovation countries, and a negative relation for transition countries. In the case of developed countries, higher survival rates stimulate national competitiveness. In the transition countries, higher survival rates lower competitiveness.