The missing link: knowledge diffusion and entrepreneurship in endogenous growth
TLDR
In this paper, the authors present a model that shows how growth depends on knowledge accumulation and its diffusion through both incumbents and entrepreneurial activities, and they claim that entrepreneurs are one missing link in converting knowledge into economically relevant knowledge.Abstract:
The intellectual breakthrough contributed by the new growth theory was the recognition that investments in knowledge and human capital endogenously generate economic growth through the spillover of knowledge. However, endogenous growth theory does not explain how or why spillovers occur. This paper presents a model that shows how growth depends on knowledge accumulation and its diffusion through both incumbents and entrepreneurial activities. We claim that entrepreneurs are one missing link in converting knowledge into economically relevant knowledge. Implementing different regression techniques for the Organisation for Economic Co-operation and Development (OECD) countries during 1981 to 2002 provides surprisingly robust evidence that primarily entrepreneurs contributed to growth and that the importance of entrepreneurs increased in the 1990s. A Granger test confirms that causality goes in the direction from entrepreneurs to growth. The results indicate that policies facilitating entrepreneurship are an important tool to enhance knowledge diffusion and promote economic growth.read more
Citations
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Journal ArticleDOI
The Knowledge Spillover Theory of Entrepreneurship
TL;DR: This article developed a knowledge spillover theory of entrepreneurship, which argued that knowledge created endogenously results in knowledge spillovers, which allow entrepreneurs to identify and exploit opportunities, and then use this knowledge to increase economic growth.
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From the entrepreneurial university to the university for the entrepreneurial society
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.
Journal ArticleDOI
Entrepreneurship: Exploring the knowledge base
TL;DR: In this article, the authors focus on the knowledge producers who have shaped the field over time and the knowledge users who have employed the core works in entrepreneurship in order to develop our knowledge of the phenomenon of entrepreneurship.
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Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence
TL;DR: In this paper, the authors explore the institutional factors that encourage opportunity entrepreneurship in order to achieve higher rates of economic growth and suggest that institutions may not have an automatic effect, as is typically assumed in growth models.
Journal ArticleDOI
Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?
TL;DR: In this article, an integrative analysis spanning a broad spectrum of diverse literature enables a distinction between two different research lines in the field of entrepreneurship, and the findings of this study, based on articles from the journals included in the Web of Science database, facilitate a broader comprehension of two separate lines of research, which allows an analysis of the interaction among institutions, entrepreneurship and economic growth.
References
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ReportDOI
Endogenous Technological Change
TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
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Increasing Returns and Economic Geography
TL;DR: This paper developed a simple model that shows how a country can endogenously become differentiated into an industrialized core and an agricultural periphery, in which manufacturing firms tend to locate in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing.
Book ChapterDOI
The Economic Implications of Learning by Doing
TL;DR: It is by now incontrovertible that increases in per capita income cannot be explained simply by increases in the capital-labor ratio as mentioned in this paper, and that knowledge is growing in time.
Book
Innovation and growth in the global economy
Gene M. Grossman,Elhanan Helpman +1 more
TL;DR: Grossman and Helpman as discussed by the authors developed a unique approach in which innovation is viewed as a deliberate outgrowth of investments in industrial research by forward-looking, profit-seeking agents.