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Journal ArticleDOI

Emergence of the entrepreneurial society

01 Sep 2009-Business Horizons (Elsevier)-Vol. 52, Iss: 5, pp 505-511
TL;DR: The entrepreneurial society refers to places where entrepreneurship has emerged as a focal point for economic growth, sustainable job creation, and competitiveness in global markets as mentioned in this paper, and it is key to taking advantage of the opportunities afforded by globalization by enhancing the innovation prowess of a nation.
About: This article is published in Business Horizons.The article was published on 2009-09-01 and is currently open access. It has received 49 citations till now. The article focuses on the topics: Globalization & Entrepreneurship.

Summary (2 min read)

Max Planck Institute, Germany

  • For years, I could not wait to get to Ireland to see and to experience this great economic boom, but I guess I should have come a few years sooner.
  • Since European economies did not prosper in the 1990s, it was not surprising that at the turn of the century Europe was making efforts to try to reignite growth and to generate employment.
  • Countries with a deficiency of large corporations focused their develop - ment largely on attracting inward foreign direct investment.
  • So the purpose of this lecture and the underlying research behind it, is to try to uncover what entrepreneurship has to do with economic growth.

II A PUBLIC POLICY DILEMMA: EFFICIENCY VERSUS DECENTRALISED DECISION MAKING

  • An entire generation of scholars in the emerging field of Industrial Organisation identified the driving force of efficiency and productivity at firm and industry levels.
  • What this meant for public policy was that there seemed to be a trade-off between having the scale economics of concentrated industry and firms, on the one hand, as against the benefits of having decentralised decision makers on the other hand.
  • Countries like Sweden and France favoured concentrated ownership of industries.
  • If you look at examples in the chemical industry, say Hoechst, you can see that while total employment went down a little, employment increased outside of Germany, again leading to many fewer employees in Germany.
  • It was there I first heard the phrase ‘Swedish Paradox’, which states that if investing in knowledge is so important, like the economists say it is, why is growth and employment creation so elusive in Sweden.

IV THE KNOWLEDGE FILTER

  • Well, had European leaders looked across to the other side of the Atlantic, they would have discovered that they did not have a monopoly on this paradox.
  • The authors see this knowledge filter not just from knowledge generated in universities, as Senator Bayh was talking about, but they also see it in knowledge generated in the private sector from private companies.
  • So they went to their boss, they went to their boss’s boss and said “let us start producing this business software”.
  • They went to the three top banks in Germany.
  • The point being that I think any time you hear of a knowledge context where the asset is not physical but rather intangible, like ideas, example after example after example of what one person thinks is a good idea, another person might not.

V ENDOGENOUS ENTREPRENEURSHIP

  • So this is what leads to what the authors now call endogenous entrepreneurship, which refers to people endogenously creating a new firm to pursue and implement their ideas, dreams, and passions when they are unable to in the context of an existing firm.
  • This suggests that in order to get more innovation the authors do not just start with the firms that exist but rather start with society, people, and then ask how can these people be facilitated and enabled to pursue ideas and start companies that are going to generate growth.
  • High-growth regions have a low knowledge filter, so that knowledge is able to spillover.
  • The authors know that this is happening because of globalisation, with employment being shifted due to outsourcing and offshoring, to some degree by the companies themselves to other places.
  • I think that this is why the authors are seeing such a move towards an entrepreneurial economy and the European entrepreneurial policy response.

VII EUROPEAN ENTREPRENEURIAL POLICY RESPONSE

  • My view is that Europe has gone through a process of shifting away from the old economy or the capital-based economy characterised by the post-World War II public policy debate, towards this very different economy, what I call an entrepreneurial economy.
  • Places that do well in the European and, North American contexts have something extra over capital – they have entrepreneurship.
  • It was to create companies like General Motors, US Steel – the great manufacturing companies.
  • There was also recognition of the law of comparative advantage.
  • In the middle of the 1990s the continent of Europe really went through stagnation – low growth, and more unemployment, and it was clear that globalisation was hitting Europe.

VIII CONCLUDING REMARKS

  • To drive efficiency, you need economies of scale, but this raises the challenge when firms are not trusted to grow unabated.
  • Public ownership regulations, tended to be national policies.
  • Let me finish with a quote from Goethe which suggests that maybe this is not so new.

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Citations
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Journal ArticleDOI
TL;DR: The authors examines how and why the role of the university in society has evolved over time and argues that the forces shaping economic growth and performance have also influenced the corresponding role for the university.
Abstract: This article examines how and why the role of the university in society has evolved over time. The paper argues that the forces shaping economic growth and performance have also influenced the corresponding role for the university. As the economy has evolved from being driven by physical capital to knowledge, and then again to being driven by entrepreneurship, the role of the university has also evolved over time. While the entrepreneurial university was a response to generate technology transfer and knowledge-based startups, the role of the university in the entrepreneurial society has broadened to focus on enhancing entrepreneurship capital and facilitating behavior to prosper in an entrepreneurial society.

473 citations


Cites background from "Emergence of the entrepreneurial so..."

  • ...…the land-grant universities developed an effective set of institutional mechanisms that enabled the commercialization of science and technology from the land grant universities that contributed to agriculture in the United States becoming the most productive in the world (Audretsch 2007, 2009)....

    [...]

Journal ArticleDOI
TL;DR: The role of technology transfer in a global economy was discussed at the 2011 Technology Transfer Society (TED) special issue as discussed by the authors, which summarizes the main topics and themes covered by a selection of papers and keynotes presented at the annual conference.
Abstract: The emergence of new technologies is acting both as a driving force and an enabling factor to globalization. At the same time, these technologies are changing rapidly, shortening the life cycles of products and the underlying processes, and raising technology costs. Technology transfer from academic and scientific institutions has thus transformed into a strategic variable for companies and nations to cope with these challenges in a global economy. This article introduces the rationale for the special issue on the role of technology transfer in a global economy. The paper summarizes the main topics and themes covered by a selection of papers and keynotes presented at the annual conference of the Technology Transfer Society in 2011, as well as providing some pointers towards a future research agenda.

173 citations

Journal ArticleDOI
TL;DR: In this article, the authors compare entrepreneurial universities in two European regions (Spain and Ireland) using an in-depth qualitative approach based on multiple case studies (two Spanish universities and two Irish universities) between 2006 and 2010.
Abstract: An entrepreneurial university is a natural incubator that tries to provide a supportive environment in which the university community can explore, evaluate and exploit ideas that could be transformed into social and economic entrepreneurial initiatives. Entrepreneurial universities are involved in partnerships, networks and other relationships to generate an umbrella for interaction, collaboration and co-operation. Rapid developments in science, the multidisciplinary nature of frontier research, legislative changes such as the Bayh–Dole Act and demands from business and society have shaped knowledge-based entrepreneurship within universities. Despite sharing similar historical backgrounds, economic conditions and cultural and social structures, entrepreneurial universities in most countries remain distinct from one another by their institutional arrangements, traditions and characteristics unique to each organization. Interestingly, no comparative research has been conducted to understand the similarities and differences of the conditioning factors and the outcomes/outputs of entrepreneurial universities in different regions that share similar social, economic and political conditions. This paper addresses this research deficit, adopting institutional economics and resource-based view. We compare entrepreneurial universities in two European regions (Spain and Ireland) using an in-depth qualitative approach based on multiple case studies (two Spanish universities and two Irish universities) between 2006 and 2010. The findings provide organizational practices and approaches relevant to the transformation process of other regional universities seeking to become entrepreneurial.

154 citations

Journal ArticleDOI
TL;DR: The capability to generate new knowledge and to create new firms differs across regions as discussed by the authors, and the extent to which differences in such capabilities are associated with regional competitiveness is examined in this paper.
Abstract: The capability to generate new knowledge and to create new firms differs across regions. Our study is an attempt to test the extent to which differences in such capabilities are associated with regional competitiveness. Using data from Spanish NUTS2 regions for the period 2000–2004, our results show that a higher capacity of a region to simultaneously generate new knowledge and start-up firms is positively linked to its level of competitiveness. This finding supports the belief that innovation per se is a necessary, but not sufficient, condition for regional economic development.

82 citations

Journal ArticleDOI
TL;DR: In this paper, a structural modeling approach based in partial least squares (PLS) has been applied to quantify the existence of a positive relationship between entrepreneurship and non-profit activity, and the results provide evidence of the strength of environmental factors such as trust, economic development, and social care public expenditures in nonprofit activity.
Abstract: This paper contributes to the existing debate on the determinants of non-profit activity. The main theories have been centered in (1) the study of the individual behavior of people (donors, non-profit entrepreneurs), (2) one single factor or (3) one single country. To quantify this approach, data for 38 countries have been used, extracted from World Values Survey, United Nations Development Program and Global Entrepreneurship Monitor. A structural modeling approach based in partial least squares (PLS) has been applied. The results provide evidence of the strength of environmental factors such as trust, economic development and social care public expenditures in non-profit activity. The model doesn’t confirm the existence of a positive relationship between entrepreneurship and non-profit activity. Nevertheless, the authors consider that the supply side theories and the idea of spatial production of entrepreneurship are quite consistent and find some signs evidencing a positive relationship between these variables.

64 citations

References
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TL;DR: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...
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In this euphoria people expected an economic surge to follow, freed from the burden of supporting the Cold War military, but also the related