Trust: The Social Virtues and the Creation of Prosperity

Geography and Trade

This paper is an introduction to the special issue from the 3rd Global Entrepreneurship Monitor Research Conference held in Washington, D.C., in 2008. The paper has three objectives. First, to discuss the importance of the three stages of economic development, the factor-driven stage, the efficiency-driven stage and the innovation-driven stage. Second, to examine the empirical evidence on the relationship between stages of economic development and entrepreneurship. Third, to present a summary of the papers in the context of the theory.

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Entrepreneurship, economic development and institutions

National Systems of Entrepreneurship: Measurement issues and policy implications

Social entrepreneurship has recently received greater recognition from the public sector, as well as from scholars. However, the lack of a unifying paradigm in the field has lead to a proliferation of definitions. Moreover, several approaches of the phenomenon, as well as different schools of thought, have emerged in different regions of the world. At first glance, because of different conceptions of capitalism and of the government's role, there seems to be a difference between the American and the European conceptions of social entrepreneurship. The objective of this paper is to clarify the concepts of ‘social entrepreneurship’, ‘social entrepreneur’ and ‘social entrepreneurship organization’ and to examine whether there is a transatlantic divide in the way these are conceived and defined. After having justified the need for a definition, we present the different geographical perspectives. North American and European literatures on social entrepreneurship are critically analysed by means of Gartner's fo...

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The multiple faces of social entrepreneurship: A review of definitional issues based on geographical and thematic criteria

As with other “typical” cities in the Midwest, Indianapolis often is overlooked in academic studies, but has much to offer the research, practice, and policy communities interested in entrepreneurship and its benefits (Motoyama et al., 2013). Our study supports the idea that Indianapolis - specifically, the greater Indianapolis/Carmel metropolitan area - represents an attractive place for business in its unique way (Max, 2013).Of special interest for regional competitiveness is a subset of companies: high-growth firms, also called gazelles, which make disproportionate economic contributions especially to job creation (Haltiwanger, Jarmin, and Miranda, 2013; Kolko and Newmark, 2007). Most research on high-growth firms focuses on their contributions to the regional and domestic economy, whereas few studies have examined the role of regional environment for high-growth firms (see Motoyama and Danley, 2012; Motoyama, 2015; Neumark and Wall, 2006).This study focuses on the regional environment for high-growth firms in the Indianapolis/Carmel area.Highlights of our findings are:• High-growth companies in Indianapolis were able to survive and grow largely without external angel or venture capital investments, two financial forms conventionally associated as the sources of growth. Most of the companies were initially financed by the founder/s, with personal funds being the most common mechanism. In addition, several entrepreneurs used bootstrapping of some kind.• High-growth firms in Indianapolis face challenges in recruiting and retaining the right talent. This is particularly the case for entry-level, recent college graduates and for technology-specific skilled talent.• However, there appears to be a “boomerang effect,” which draws many former residents back to the region after they have lived elsewhere, often for personal reasons such as raising children or being close to family.• High-growth firms in Indianapolis do not generally have strong direct business ties with other companies in the region, including with vendors and customers, nor do they have significant direct competition in the region.• The locational choice of high-growth entrepreneurs appears to be “by chance,” as opposed to a deliberate choice. Many people interviewed were already in the region and did not move to Indianapolis specifically for the purposes of starting or growing a company, but they also touted its many advantages.• Taking these findings together, people start businesses where they live. In other words, talented people in a region, such as entrepreneurs and technical experts, do not choose the place to start a business. This is in contrast to the currently dominant theories of the creative class. • Other regional advantages identified in interviews include market size, locational advantage of proximity to other major markets, and a “Midwestern work ethic,” which seems to imply a hardworking attitude without job-hopping.• Findings on the overall ecosystem are mixed. Most interviewees reported a generally positive overall environment, but not overwhelmingly so, and several interviewees indicated no effect or a negative impact of the overall ecosystem.

The Regional Environment: Indianapolis - Insights from High-Growth Companies

Essays on entrepreneurship and postconflict reconstruction

What differentiates American capitalism from all other forms of industrial capitalism is a historical focus on both the creation of wealth (entrepreneurship) and the reconstitution of wealth (philanthropy). Philanthropy has been part of the implicit American social contract that continuously nurtures and revitalizes economic prosperity. Much of the new wealth created historically has been given back to the community to build many of the great social institutions that have paved the way for future economic growth. This entrepreneurship-philanthropy nexus has not been fully explored by either economists or the general public. The purpose of this paper is to suggest that American philanthropists—particularly those who have made their own fortunes—create foundations that, in turn, contribute to greater and more widespread economic prosperity through knowledge creation. Analyzing philanthropy sheds light on our current understanding of how economic development has occurred, as well as the roots of American economic dominance.

The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism

Scientific breakthroughs emanating from universities can be a trigger for the emergence of new industries such as in the paradigmatic case of biotechnology. Obviously, not all research conducted in the universities leads to radical departure from the existing technological trajectories. When a patent protection is granted to a discovery, it is possible to construct a proxy for the originality of the discovery based on patent citations. Patent originality has been long recognized in fostering the emergence of new technologies and industries. However, while a large body of literature exists measuring the impact of patent originality on a broad range of measures of firm performance, this paper aims at investigating the conditions driving patent originality. In particular, in providing the first empirical examination of the determinants of patent originality, this paper finds that the research context, as reflected by the funding source for the scientist, influences the extent to which intellectual property protected by a patent is original. Eventually, we propose that university scientists funded by their university, which has a more fundamental mission, have a higher propensity to generate patents that are more original. By contrast, university scientists funded either by industry or other non-university organizations have a lower propensity to generate more original patents.

University Knowledge, Originality of Patents and the Creation of New Industries

Contents: PART I: THEORY AND METHODS IN ENTREPRENEURSHIP AND DEVELOPMENT 1. Introduction Roger R. Stough 2. The Entrepreneur in Economic Theory Ronald W. McQuaid 3. A Contemporary Perspective on Public Sector Venture Capitalism John Sacco and Odd Stalebrink 4. Determinants and Impact of Entrepreneurship Capital: The Spatial Dimension and a Comparison of Different Econometric Approaches David Audretsch, Werner Bonte and Max Keilbach 5. The Design of Industrial Models: Addressing Cooperative Behaviours, Innovation and Public Policy Maria Teresa de Noronha Vaz 6. Differentials in Industrial Structure and Human Capital Performance Across Australia's Regions and the Settlement System Robert Stimson 7. Innovation Clusters Linking Regions Brigitte Preissl PART II: CASE STUDIES INCLUDING PRACTICE AND POLICY 8. Explaining China's Economic Growth: Does Entrepreneurship Matter? Junbo Yu, Shaoming Cheng and Roger Stough 9. Knowledge Accessibility and New Firm Formation Charles Karlsson and Kristina Nystrom 10. Migrant Female Entrepreneurship: Driving Forces, Motivation and Performance Tuzin Baycan-Levent and Peter Nijkamp 11. Industrial Effects on Resource Acquisition: Immigrant Enterprises in Kista, Stockholm Tobias Dalhammar and Terrence Brown 12. The Entrepreneurial Environment: Business Incubation in the Charlotte Metropolitan Region Peter M. Frank 13. University Spin-Offs: An Exploration of Age-Patterns of Obstacles to Growth Marina Van Geenhuizen and Danny P. Soetanto 14. FDI Inflows to Sweden: Consequences for Innovation and Renewal Borje Johansson and Hans Loof

Sameeksha Desai

Papers

The Regional Environment: Indianapolis - Insights from High-Growth Companies

Essays on entrepreneurship and postconflict reconstruction

The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism

University Knowledge, Originality of Patents and the Creation of New Industries

New Directions in Regional Economic Development: The Role of Entrepreneurship Theory and Methods, Practice and Policy