This article examines the relationship between entrepreneurship and economic growth for 19 OECD countries from 2001 to 2009. We used two measures for entrepreneurship: the level of entrepreneurial activities and potential innovation. We estimated a growth function using techniques of panel data. The results show a significant and positive impact of the variables used to measure entrepreneurship on economic growth. The results also show that the impact of innovation becomes more potential significant and higher in the presence of a favorable institutional framework. These results have strong implications for economic policy. The government will further promote entrepreneurial activities, especially which generate innovation, by providing a favorable institutional framework.