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Does attention-deficit hyperactivity disorder medication reduce entrepreneurship?

Juhana Peltonen1, Edvard Johansson2, Joakim Wincent1,3

  • 1Department of Management and Organization, Hanken School of Economics, Helsinki, Finland.

Health Economics
|June 23, 2020
PubMed
Summary

Increased adult ADHD medication use may unintentionally reduce entrepreneurship. This study found higher ADHD medication prevalence correlates with fewer new business registrations, impacting economic development.

Keywords:
ADHDattention-deficit hyperactivity disorderentrepreneurshipnew businessstimulant medication

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Area of Science:

  • Neuroscience
  • Economics
  • Sociology

Background:

  • Attention-deficit hyperactivity disorder (ADHD) is highly inheritable with stable prevalence.
  • ADHD is linked to negative life outcomes, leading to increased medication use.
  • ADHD-like traits may benefit entrepreneurship, a driver of economic development.

Purpose of the Study:

  • To investigate the association between rising adult ADHD medication use and entrepreneurship rates.
  • To determine if increased ADHD medication prevalence has unintended consequences for new business formation.

Main Methods:

  • Utilized panel data from 11 countries and one SAR.
  • Analyzed the correlation between adult ADHD medication prevalence and limited liability company registrations.
  • Calculated the impact of standard deviation increases in medication prevalence on business formation.

Main Results:

  • A one-unit increase in adult ADHD medication prevalence was associated with a one-unit decrease in new business registrations per capita.
  • A one standard deviation increase in adult ADHD medication prevalence corresponded to a 20% decrease in the mean rate of new business formation.

Conclusions:

  • The increasing use of ADHD medication in adults may be linked to a reduction in entrepreneurship.
  • Societal implications of widespread ADHD medication require further investigation, particularly concerning economic development.
  • Findings suggest a potential trade-off between symptom management and entrepreneurial activity.