Showing papers by "Zoltan J. Acs published in 2012"
TL;DR: In this paper, the authors identify entrepreneurship as one such mechanism facilitating the spillover of knowledge facilitating economic growth, and provide empirical evidence that entrepreneurial activity also serves to promote economic growth.
Abstract: In this paper we suggest that the spillover of knowledge may not occur automatically as typically assumed in models of endogenous growth. Rather, a mechanism is required to serve as a conduit for the spillover and commercialization of knowledge from the source creating it, to the firms actually commercializing the new ideas. In this paper, entrepreneurship is identified as one such mechanism facilitating the spillover of knowledge. Using a panel of entrepreneurship data from 18 countries, we provide empirical evidence that, in addition to measures of Research & Development and human capital, entrepreneurial activity also serves to promote economic growth.
283 citations
TL;DR: The knowledge spillover theory of entrepreneurship predicts that entrepreneurial activity is greater in regions with more knowledge conditional on the commercialization efficiency of incumbents, which limits entrepreneurial discovery as mentioned in this paper, and the theory is extended to contend that localized competition impedes entrepreneurial activity by reducing the incentive to exploit new knowledge.
Abstract: The knowledge spillover theory of entrepreneurship predicts that entrepreneurial activity is greater in regions with more knowledge conditional on the commercialization efficiency of incumbents, which limits entrepreneurial discovery. We extend the theory to contend that localized competition impedes entrepreneurial activity by reducing the incentive to exploit new knowledge. We test this conjecture using spatial panel estimation. We find a positive relationship between new knowledge and entrepreneurial activity that is negatively moderated by localized competition. We also find that greater agglomeration counteracts the moderating effect localized competition has on the relationship between new knowledge and entrepreneurial activity.
105 citations
TL;DR: In this paper, the authors developed an endogenous-growth model in which they distinguish between inventors and innovators and showed that patent protection has an inverted U-shaped effect on economic growth.
Abstract: We develop an endogenous-growth model in which we distinguish between inventors and innovators. This distinction implies that stronger protection of intellectual property rights has an inverted U-shaped effect on economic growth. Intellectual property rights protection attributes part of the rents of commercial exploitation to the inventor that would otherwise accrue to the entrepreneur. Stronger patent protection will therefore increase the incentive to do research and development (R&D) and generate new knowledge. This new knowledge has a positive effect on entrepreneurship, innovation, and growth. However, after some point, further strengthening of patent protection will reduce the returns to entrepreneurship sufficiently to reduce the overall growth rate.
82 citations
TL;DR: In this paper, the authors argue that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state, and they outline some considerations for such an industrial policy where the entrepreneur-state nexus is paramount.
Abstract: Unlike in the past where industrial policy was either focused on creation and growth of stateowned firms or alternatively consisted merely of broadly functional policies without consideration for firm or entrepreneurial specifics, the requirement now is that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state. In this paper we outline some considerations for such an industrial policy where the entrepreneur–state nexus is paramount. Moreover, we argue that such an industrial policy will need to take into consideration that the entrepreneur–state nexus is evolving, and that it depends on the stage of development of a particular country.
53 citations
TL;DR: In this article, the authors examined the reasons for different levels of knowledge-based entrepreneurship in Ireland and Wales and explored FDI and entrepreneurship policy to evaluate key measures of knowledge creation, and evaluate the extent and nature of FDI activity and its relationship with entrepreneurship.
Abstract: Does the knowledge spillover theory of entrepreneurship provide an explanation for the emergence of knowledge-based entrepreneurship in Ireland and Wales? To examine the reasons for different levels of knowledge-based entrepreneurship in these two regions we explore FDI and entrepreneurship policy. We outline key measures of knowledge creation, and evaluate the extent and nature of FDI activity and its relationship with entrepreneurship in general and knowledge-based entrepreneurship in particular. Policy implications include the need for more integrated policy directions for countries that are characterised by weak knowledge creating institutions yet wish to encourage knowledge-based entrepreneurship.
28 citations
TL;DR: In this article, the authors provided a novel look into the entrepreneurial profile of the UK in an international context, using the Global Entrepreneurship and Development Index (GEDI) to identify the entrepreneurial strengths and weaknesses of UK economy, as well as to identify potential bottlenecks that hold back the performance of UK relative to other advanced economies.
Abstract: In this research summary, we provide a novel look into the entrepreneurial profile of the UK in an international context. We use a new method – the Global Entrepreneurship and Development Index GEDI – to identify the entrepreneurial strengths and weaknesses of the UK economy, as well as to identify potential bottlenecks that hold back the performance of the UK relative to other advanced economies. We perform a Penalty for Bottleneck analysis to identify the bottlenecks in the UK's entrepreneurial profile. We also explore optimal resource allocation for UK's policy for National Systems of Entrepreneurship.
15 citations
TL;DR: In this paper, the authors construct a regional entrepreneurship and development index (REDI) that captures the contextual features of entrepreneurship across regions, using both institutional data and survey data weaknesses in the incentive structure that affects regional development can be identified.
Abstract: This paper constructs a Regional Entrepreneurship and Development Index (REDI) that captures the contextual features of entrepreneurship across regions. Using both institutional data and survey data weaknesses in the incentive structure that affects regional development can be identified. The entrepreneurial disparities among regions are analysed at the country and regional level using a penalty for bottleneck methodology. The methodology allows us to coordinate public policy action at national and regional levels.
11 citations
Posted Content•
TL;DR: In this paper, the Acs-Szerb Global Entrepreneurship and Development Index (GEDI) methodology is used to show the public policy applicability of GEDI, which is a complex measure of entrepreneurship involving three sub-indices, 14 pillars and 28 variables.
Abstract: Building on the Acs-Szerb Global Entrepreneurship and Development Index (GEDI) methodology this paper aims to show the public policy applicability of GEDI. GEDI is a complex measure of entrepreneurship involving three sub-indices, 14 pillars and 28 variables. By answering four research questions we present Hungary’s entrepreneurial profile, show the change of the entrepreneurship over the 2006-2010 time period, and identify the strengths and the weaknesses. Hungary is compared to three important country groups. GEDI is a useful tool for policy-oriented analysis. Unlike other research projects that provide rather general and uniform policy suggestions, GEDI offers individual country level, tailor-made policy recommendations. Based on the principle of the weakest link, we present an optimal policy mix for Hungary involving the eight weakest performing pillars to improve Hungary’s GEDI score.
7 citations
TL;DR: In this paper, the authors develop a model that separates invention from innovation where new ideas are a costless spillover from profit motivated corporate R&D aimed at improving existing production processes.
Abstract: This paper challenges the key assumption in "idea based growth models" that innovation rents ultimately reward the creation of knowledge. In modern capitalist economies the agents that commercialize new ideas, the entrepreneurs, receive the bulk of the innovation rents and are generally the residual claimant. We develop a model that separates invention from innovation where new ideas are a costless spillover from profit motivated corporate R&D aimed at improving existing production processes. We then show that a central planner can improve over the decentralized equilibrium by reallocating resources between R&D and entrepreneurship. The optimal allocation between commercializers and inventors depends on the relative strength of down- and upstream knowledge spillovers.
5 citations
TL;DR: The authors found that cultural traits create burdens for ESMEs' global engagements but improving regulatory systems and other institutions might reduce the uncertainty inherent in the internationalization process and bring out the policy implications of their conclusions.
Abstract: In spite of the world wide lowering of trade and investment barriers and increasing globalization in the last decade, internationalization activities of small and medium sized enterprises from emerging economies (ESMEs) have been limited. Drawing from the internationalization and entrepreneurship literatures that are based on risk, we develop hypotheses relating cultural variables to the internationalization intensity of ESMEs. We use a sample of 7212 firms from 36 developing countries and multi- level analysis to test these relationships and the moderating influence of institutions. We find that certain cultural traits create burdens for ESMEs’ global engagements but improving regulatory systems and other institutions might reduce the uncertainty inherent in the internationalization process. We bring out the policy implications of our conclusions.
3 citations
TL;DR: Gines as mentioned in this paper provides an overview of the fundamentals of microeconomics and basic calculus, but it is not comprehensive enough to make up for a lack of prior subject knowledge of micro-economics.
Abstract: provides an overview of the fundamentals of microeconomics, it is not comprehensive enough to make up for a lack of prior subject knowledge of microeconomics and basic calculus. The application of these concepts in numerical examples of risk could be explained in more detail and supported by graphical illustrations as Layard and Glaister (1994) provide in Cost–benefit Analysis. In addition, for the benefit of beginners, it might have been helpful if Gines had provided an overview of some key statistical concepts, such as probability distribution, probability and cumulative density functions, and normal distribution, that are crucial to the understanding of risk. Also, from a practitioners’ point of view, it also may have been useful if Gines had included a short description of the software used to perform the risk analysis. Despite its limitations, for readers with a background in microeconomics and some knowledge of statistics, this book can be an excellent resource to familiarize themselves with the techniques of cost–benefit analysis.
Posted Content•
01 Jan 2012
TL;DR: In this paper, the Acs-Szerb Global Entrepreneurship and Development Index (GEDI) methodology is used to show the public policy applicability of GEDI, which is a complex measure of entrepreneurship involving three sub-indices, 14 pillars and 28 variables.
Abstract: Building on the Acs-Szerb Global Entrepreneurship and Development Index (GEDI) methodology this paper aims to show the public policy applicability of GEDI. GEDI is a complex measure of entrepreneurship involving three sub-indices, 14 pillars and 28 variables. By answering four research questions we present Hungary’s entrepreneurial profile, show the change of the entrepreneurship over the 2006-2010 time period, and identify the strengths and the weaknesses. Hungary is compared to three important country groups. GEDI is a useful tool for policy-oriented analysis. Unlike other research projects that provide rather general and uniform policy suggestions, GEDI offers individual country level, tailor-made policy recommendations. Based on the principle of the weakest link, we present an optimal policy mix for Hungary involving the eight weakest performing pillars to improve Hungary’s GEDI score.