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The knowledge filter, Entrepreneurship and Economic Growth

Author

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  • Carlsson, Bo

    () (Case Western Reserve University)

  • Acs, Zoltan

    () (University of Baltimore)

  • Audretsch, David

    () (Max-Planck Institute)

  • Braunerhjelm, Pontus

    () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

This paper explores the relationship between knowledge creation, entrepreneurship, and economic growth in the United States over the last 150 years. According to the “new growth theory,” investments in knowledge and human capital generate economic growth via spillovers of knowledge. But the theory does not explain how or why spillovers occur, or why large investments in R&D do not always result in economic growth. What is missing is “the knowledge filter” - the distinction between general knowledge and economically useful knowledge. Also missing is a mechanism (such as entrepreneurship) converting economically relevant knowledge into economic activity. This paper shows that the unprecedented increase in R&D spending in the United States during and after World War II was converted into economic activity via incumbent firms in the early postwar period and increasingly via new ventures in the last few decades.

Suggested Citation

  • Carlsson, Bo & Acs, Zoltan & Audretsch, David & Braunerhjelm, Pontus, 2007. "The knowledge filter, Entrepreneurship and Economic Growth," Working Paper Series in Economics and Institutions of Innovation 104, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0104
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    References listed on IDEAS

    as
    1. Carlsson, Bo, 1992. "The Rise of Small Business: Causes and Consequences," Working Paper Series 357, Research Institute of Industrial Economics.
    2. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    3. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144 Edward Elgar Publishing.
    4. Zoltan J. Acs & David B. Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2005. "Growth and Entrepreneurship: An Empirial Assessment," Papers on Entrepreneurship, Growth and Public Policy 2005-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    5. Gartner, William B. & Shane, Scott A., 1995. "Measuring entrepreneurship over time," Journal of Business Venturing, Elsevier, vol. 10(4), pages 283-301, July.
    6. Zoltan J. Acs & Bo Carlsson & Pontus Braunerhjelm & David B. Audretsch, "undated". "The Missing Link," Papers on Entrepreneurship, Growth and Public Policy 2005-08, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    7. Robert H. McGuckin & Robert Inklaar & Bart van Ark & Sean M. Dougherty, 2004. "The Structure of Business R&D: Recent Trends and Measurement Implications," Economics Program Working Papers 04-01, The Conference Board, Economics Program.
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    Citations

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    Cited by:

    1. Zoltán J. Ács & Lawrence A. Plummer & Ryan Sutter, 2015. "Penetrating the knowledge filter in “rust belt” economies," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 17, pages 320-343 Edward Elgar Publishing.
    2. Eric Berkers, 2008. "Tastes differ: Comparing company strategies, innovation trajectories and knowledge sources in Dutch soft drink production in the 1930s," Business History, Taylor & Francis Journals, vol. 50(3), pages 351-367.
    3. Zoltan J. Acs, 2006. "State of literature on small to medium-size enterprises and entrepreneurship in low-income communities," Proceedings: Community Affairs Dept. Conferences, Federal Reserve Bank of Kansas City, issue Jul, pages 21-54.
    4. Maribel Guerrero & David Urbano, 2014. "Academics’ start-up intentions and knowledge filters: an individual perspective of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 43(1), pages 57-74, June.
    5. Mueller, Pamela, 2005. "Exploring the knowledge filter: how entrepreneurship and university-industry relations drive economic growth," Freiberg Working Papers 2005,17, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    6. Martin Carree & Antonio Malva & Enrico Santarelli, 2014. "The contribution of universities to growth: empirical evidence for Italy," The Journal of Technology Transfer, Springer, vol. 39(3), pages 393-414, June.
    7. Pamela Mueller, 2007. "Exploiting Entrepreneurial Opportunities: The Impact of Entrepreneurship on Growth," Small Business Economics, Springer, vol. 28(4), pages 355-362, April.
    8. Paul Bishop, 2012. "Knowledge, diversity and entrepreneurship: a spatial analysis of new firm formation in Great Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(7-8), pages 641-660, September.
    9. Jan Gunnarsson & Torsten Wallin, 2011. "An evolutionary approach to regional systems of innovation," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 321-340, May.
    10. Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
    11. Gurrieri, Antonia Rosa, 2008. "Knowledge network dissemination in a family-firm sector," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2380-2389, December.
    12. Mueller, Pamela, 2005. "Exploiting entrepreneurial opportunities: the impact of entrepreneurship on economic growth," Freiberg Working Papers 2005,16, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    13. Zoltan Acs & Lawrence A. Plummer & Ryan Sutter, 2007. "Penetrating the Knowledge Filter in the Rust Belt," Jena Economic Research Papers 2007-058, Friedrich-Schiller-University Jena.
    14. David J. Miller & Zoltan J. Acs, 2013. "Backing the horse or the jockey? University knowledge commercialization in the entrepreneurial age," Chapters,in: Knowledge Commercialization and Valorization in Regional Economic Development, chapter 2, pages 23-45 Edward Elgar Publishing.

    More about this item

    Keywords

    knowledge; economic growth; entrepreneurship; spillovers; history;

    JEL classification:

    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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    1. Socio-Economics of Innovation

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