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Endogenous growth through knowledge spillovers in entrepreneurship: An empirical test

  • Delmar, Frédéric

    ()

    (Research Institute of Industrial Economics and Center for Research in New Venture Creation and Growth)

  • Wennberg, Karl

    ()

    (The Ratio Institute and Stockholm School of Economics)

  • Hellerstedt, Karin

    ()

    (Jönköping International Business School)

Endogenous growth theory is based on the notion that technological knowledge stimulates growth, yet the micro foundations of this process are rarely investigated and remain obscure. Knowledge spillover theory posits that growth is contingent on the technology dependence of industries, forming the landscape for technology entrepreneurs to launch and grow new ventures. We investigate these theoretical contingencies of endogenous growth with two research questions at two levels of analysis: First, do industries with a greater need for new technology-based entrepreneurship grow disproportionately faster than other industries? Second, do the knowledge spillover effects foster the growth of new technology based firms contingent on certain industry structures? These questions are examined empirically, using a comprehensive employee-employer data set on the science and technology labor force in Sweden from 1995 to 2002.

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Paper provided by The Ratio Institute in its series Ratio Working Papers with number 165.

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Length: 48 pages
Date of creation: 12 Apr 2011
Date of revision:
Handle: RePEc:hhs:ratioi:0165
Note: Forthcoming in Strategic Entrepreneurship Journal
Contact details of provider: Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
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Fax: 08-441 59 29
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  1. Timothy B. Folta & Frédéric Delmar & Karl Wennberg, 2010. "Hybrid Entrepreneurship," Management Science, INFORMS, vol. 56(2), pages 253-269, February.
  2. Beck, Thorsten & Demirguc-Kunt, Asli & Laeven, Luc & Levine, Ross, 2005. "Finance, firm size, and growth," Policy Research Working Paper Series 3485, The World Bank.
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  16. Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers 02-0101, University of Illinois at Urbana-Champaign, College of Business.
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