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Scientific Paradigms, Entrepreneurial Opportunities and Cycles in Economic Growth

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  • Mark Sanders

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Abstract

In this paper I present a model of economic growth that combines insights from endogenous growth theory, the field of entrepreneurship research and the philosophy and economics of science. The model is built on three relatively standard assumptions and a Kuhnian approach to scientific knowledge accumulation. I assume that innovation generates economic growth, that opportunity driven entrepreneurship is an important source of innovation, that entrepreneurial opportunities increasingly arise out of scientific knowledge creation and that science follows Kuhnian paradigm shifting dynamics. The model then generates opportunity driven cycles in entrepreneurial activity that in turn cause waves of innovation and cycles in economic growth. This result is highly relevant and fills a gap in all three literatures as ‚traditional’ endogenous growth models typically generate constant growth rates in the steady state, entrepreneurship research keeps the origin of entrepreneurial opportunity exogenous and the literatures on the philosophy and economics of science ignore the important downstream economic implications of the non-profit driven institutional framework that governs scientific knowledge accumulation. This paper contributes by identifying scientific institutions and entrepreneurial activity as prerequisites for economic growth and it offers a tentative explanation for the rise and fall in the levels of scientific, entrepreneurial and economic activity over the Kondratieff-cycle. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s11187-006-9038-6
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 28 (2007)
Issue (Month): 4 (April)
Pages: 339-354

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Handle: RePEc:kap:sbusec:v:28:y:2007:i:4:p:339-354

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: endogenous growth theory; entrepreneurship; paradigms; scientific institutions; E32; L26; M13; O11; O31; O41;

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Cited by:
  1. Antonio Della Malva & Martin Carree & Enrico Santarelli, 2011. "Universities, Entry and Growth," ERSA conference papers ersa10p554, European Regional Science Association.
  2. Massón Guerra, José Luis, 2007. "El capital empresarial como determinante de la productividad y el crecimiento en España
    [The Impact of Entrepreneurship Capital on Spanish's Labor Productivity and Economic Growth]
    ," MPRA Paper 4073, University Library of Munich, Germany.
  3. Bögenhold, Dieter & Heinonen, Jarna & Akola, Elisa, 2013. "Entrepreneurship and Independent Professionals: Why do Professionals not meet with Stereotypes of Entrepreneurship?," MPRA Paper 51529, University Library of Munich, Germany.
  4. Naude, Wim, 2009. "Out with the sleaze, in with the ease: Insufficient for entrepreneurial development?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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