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An Evolutionary Approach to the Theory of Entrepreneurship

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  • Thomas Grebel
  • Andreas Pyka
  • Horst Hanusch

Abstract

An economic model featuring entrepreneurial behaviour is built and tested using simulation techniques. The building blocks of our model are bounded-rational actors with specific sets of endowments: ""entrepreneurial spirit'', human capital, and venture capital. The entrepreneurial behaviour to found a firm is triggered by the individuals' endowments, their social network, and the evaluation of the economic situation. Bandwagon effects occur when high growth rates in emerging markets increase firm entries and firm entries in return increase growth rates until competition unfolds its selective power. The firm's survivability is determined by its founders' endowments and its competitiveness. Whether actors are right or wrong in evaluating their economic situation and their consequent decisions is proven ex post . Thus, there will be winners and losers in this economic system.

Suggested Citation

  • Thomas Grebel & Andreas Pyka & Horst Hanusch, 2003. "An Evolutionary Approach to the Theory of Entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 10(4), pages 493-514.
  • Handle: RePEc:taf:indinn:v:10:y:2003:i:4:p:493-514
    DOI: 10.1080/1366271032000163702
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    References listed on IDEAS

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    1. Foss, Nicolai Juul, 1993. "Theories of the Firm: Contractual and Competence Perspectives," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 127-144, May.
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    3. Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 141-161, Spring.
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    5. Kirzner, Israel M, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 5-17.
    6. Herbert A. Simon & Massimo Egidi & Ricardo Viale & Robin Marris, 1992. "Economics, Bounded Rationality and the Cognitive Revolution," Books, Edward Elgar Publishing, number 409.
    7. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, June.
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    Citations

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    Cited by:

    1. Audretsch, David B & Meijaard, Joris & Stam, Erik, 2005. "Renascent Men or Entrepreneurship as a One-Night Stand: Entrepreneurial Intentions Subsequent to Firm Exit," CEPR Discussion Papers 5342, C.E.P.R. Discussion Papers.
    2. Michael Peneder, 2009. "The Meaning of Entrepreneurship: A Modular Concept," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 77-99, June.
    3. Horst Hanusch & Andreas Pyka, 2006. "Manifesto for Comprehensive Neo-Schumpeterian Economics," Discussion Paper Series 289, Universitaet Augsburg, Institute for Economics.
    4. A. Pyka & G. Fagiolo, 2007. "Agent-based Modelling: A Methodology for Neo-Schumpetarian Economics," Chapters,in: Elgar Companion to Neo-Schumpeterian Economics, chapter 29 Edward Elgar Publishing.
    5. Baltar, Fabiola & de Coulon, Sonia, 2014. "Dynamics of the entrepreneurial process: the innovative entrepreneur and the strategic decisions," Nülan. Deposited Documents 1878, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    6. Karl Wennberg & Karin Hellerstedt, 2011. "Evolution of knowledge intensive firms: a sociogeographic demand side perspective," ERSA conference papers ersa10p1585, European Regional Science Association.
    7. Horst Hanusch & Andreas Pyka, 2007. "Principles of Neo-Schumpeterian Economics," Cambridge Journal of Economics, Oxford University Press, vol. 31(2), pages 275-289, March.
    8. Andreas Pyka & Uwe Cantner & Alfred Greiner & Thomas Kuhn (ed.), 2009. "Recent Advances in Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 12982.
    9. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    10. Atkinson, Robert D. & Hackler, Darrene, 2010. "Economic Doctrines and Approaches to Climate Change Policy," MPRA Paper 29718, University Library of Munich, Germany.
    11. Thomas Grebel & Horst Hanusch & Esther Merey, 2004. "Schumpeterian Dynamics and Financial Market Anomalies," Discussion Paper Series 264, Universitaet Augsburg, Institute for Economics.
    12. Fusari, Angelo, 2016. "A New Economics for Modern Dynamic Economies," MPRA Paper 74008, University Library of Munich, Germany, revised 2016.
    13. Anthony Endres & Christine Woods, 2010. "Schumpeter’s ‘conduct model of the dynamic entrepreneur’: scope and distinctiveness," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 583-607, August.
    14. Fusari, Angelo, 2015. "The question of the firm. Organizational forms and dimensions," MPRA Paper 74177, University Library of Munich, Germany, revised 2015.
    15. Thomas Grebel & Andreas Pyka, 2003. "Agent-based modelling - A methodology for the analysis of qualitative development processes," Discussion Paper Series 251, Universitaet Augsburg, Institute for Economics.
    16. Isabel Salavisa & Pedro Videira & Filipa Santos, 2009. "Entrepreneurship and social networks in IT sectors: the case of the software industry in Portugal," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 15-39.
    17. Grebel, Thomas, 2009. "Technological change: A microeconomic approach to the creation of knowledge," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 301-312, December.
    18. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.

    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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