Abstract:  Popular Entrepreneurship and Innovation is an important measure taken to realize the Innovation-Driven Development Strategy in the context of the New Normal in China. In 2015, the Government Work Report put forward that entrepreneurship and innovation is a new engine for economic development. Since then, "popular entrepreneurship and innovation" has been supported by nearly 300 documents issued by the State Council and Ministries. In 2017, the number of registered enterprises reached 16,600 on a daily basis. Nevertheless, how the effect of “popular entrepreneurship and innovation” on economic development is evaluated? How is the driven effect by now? There is still lack of theoretical and empirical research. Combined with the development characteristics of "popular entrepreneurship and innovation" in China, the research revised Porter’s Diamond Model which holds that opportunity and government are no longer additional elements, but the important environmental factors that affect the other four create a good environment for the generation and development of other elements, and at the same time government policy has an impact on opportunity.On this basis, anElement Model of Popular Entrepreneurship and Innovation–Driven Economic Development is established, which can be divided into three parts: the element layer, the coordination layer and the environment layer. The element layer is composed of the basic elements supporting innovation and entrepreneurship. The coordination layer contains the communication and interaction of the basic elements around the goal of innovation and entrepreneurship. The environment layer is the collection of all the macroscopic factors that influence the formation of factors and the interaction among factors. Therefore, the Element Model of Popular Entrepreneurship and Innovation–Driven Economic Development is an elements set which takes innovation and entrepreneurship resources as core, pays attention to the elements and synergies of promoting popular entrepreneurship and innovation, and gathers the influence of policy and opportunity on innovation and entrepreneurship.An evaluation index system for the effect of popular entrepreneurship and innovation on economic development is designed based on the Element Model of Popular Entrepreneurship and Innovation–Driven Economic Development, including 3 first-level indicators of elements, collaboration and environment, and 10 second-level indicators (4 belong to element layer, 4 belong to collaboration layer, and 2 belong to environment layer) and 43 third-level indicators (18 belong to element layer, 9 belong to collaboration layer, and 14 belong to environment layer). It carried out an empirical analysis based on the survey data of 324 enterprises from various industries, like internet, machinery manufacturing, clean technology, semiconductor, information technology, finance. The questionnaire is designed to evaluate relevant indicators from the perspective of perception with enterprises as the main body. Delphi method was used to determine the weight. The experts included scholars, managerial personnel, governmental personnel, management consultants, etc. According to the Likert 5-point scale, the higher the score is, the better the support for innovation and entrepreneurship will be; otherwise, the weaker the support. Data show that, in general, the popular entrepreneurship and innovation has a better effect on economic development, and the score is 78 (100 point system). Among them, environmental factors score the highest (80 points), collaboration factors second (79 points), and key factors score relatively less (73 points). For the specific scores, except production factor (71 points) and enterprise factor (69 points), the scores of other factors are basically the same and at a high level (75 points or more). Among them, the opportunity score the highest (83 points), which indicates that the science and technology, market demand and social atmosphere encouraging innovation and entrepreneurship provide more innovation and entrepreneurship motivation and opportunities for the sample enterprises.The study reachedthe following conclusions: (1) the driven effect is realized through three parts: element layer, coordination layer and environment layer. The three parts focus on element composition, interaction and environmental impact from micro, medium and macro perspectives respectively; (2) the driven effect depends on the availability of "popular entrepreneurship and innovation" elements, the synergy between elements and the impact of policies and opportunity environment. The weight coefficients of the three are 0.3, 0.5 and 0.2 respectively; and (3) "popular entrepreneurship and innovation" has a significant driving effect on economic development, with complete elements and sufficient interaction in a comfortable environment. The study also found that, in order to promote the effect of "popular entrepreneurship and innovation" oneconomic development, the supply of professional human resources, the demand for financial capital of corporate, the quality of projects and the policy environment need to be further optimized. They are reflected in: (1) lack of innovation and entrepreneurship talents is the source of innovation and entrepreneurship problems, and the cultivation of professional innovation and entrepreneurship talents should become the focus of current innovation and entrepreneurship education. The cooperation among the government, enterprises and universities should be strengthened to maximize the synergistic promotion of the three parties in the process of talent cultivation, so as to provide the best growth environment for them; (2) the financial capital could not meet the needs of enterprises. In order to alleviate the capital pressure further, the investment of social capital should be actively guided, and a market-oriented diversified financing system should be built; (3) the proportion of technological innovation entrepreneurship is relatively small. The promotion effect of innovation and entrepreneurship on economy mainly depends on innovation, that is, the quality of innovation and entrepreneurship is the key to whether "popular entrepreneurship and innovation" can promote economic development, rather than the quantity. Therefore, in order to promote "popular entrepreneurship and innovation" to become a new engine of economic development after the formation of the whole society's innovation and entrepreneurship atmosphere, it should focus on supporting and encouraging the development of innovative entrepreneurship; and (4) although the specific policies on intellectual property protection, industry-university-research cooperation and finance innovation have been continuously improved, they are still limitation for enterprises in those parts. Therefore, the construction of policy environment should focus on specific problems and difficulties to further optimize the policy environment for innovation and entrepreneurship.

Key words:  popular entrepreneurship and innovation, theoretical model, evaluation indicator system, empirical study