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The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism

Author

Listed:
  • Zoltan J. Acs

    (George Mason University)

  • David Audretsch

    (Indiana University and Max Planck Institute of Economics, Jena)

  • Ronnie J. Phillips

    (Kauffman Foundation and Colorado State University)

  • Sameeksha Desai

    (George Mason University)

Abstract

What differentiates American capitalism from all other forms of industrial capitalism is a historical focus on both the creation of wealth (entrepreneurship) and the reconstitution of wealth (philanthropy). Philanthropy has been part of the implicit American social contract that continuously nurtures and revitalizes economic prosperity. Much of the new wealth created historically has been given back to the community to build many of the great social institutions that have paved the way for future economic growth. This entrepreneurship-philanthropy nexus has not been fully explored by either economists or the general public. The purpose of this paper is to suggest that American philanthropists-particularly those who have made their own fortunes-create foundations that, in turn, contribute to greater and more widespread economic prosperity through knowledge creation. Analyzing philanthropy sheds light on our current understanding of how economic development has occurred, as well as the roots of American economic domi- nance.

Suggested Citation

  • Zoltan J. Acs & David Audretsch & Ronnie J. Phillips & Sameeksha Desai, 2007. "The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism," Jena Economic Research Papers 2007-025, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2007-025
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    References listed on IDEAS

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    5. Frank G. Dickinson, 1970. "The Changing Position of Philanthropy in the American Economy," NBER Books, National Bureau of Economic Research, Inc, number dick70-1.
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    7. Coase, R H, 1976. "Adam Smith's Views of Man," Journal of Law and Economics, University of Chicago Press, vol. 19(3), pages 529-546, October.
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    Cited by:

    1. Jean Bonnet & Thomas Brau, 2012. "L’entreprise innovante, un symbole pour son créateur," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201234, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    2. Jean Bonnet & Thomas Brau & Antonia Guijarro Madrid, 2011. "Innovative entrepreneurship as a way to meet professional dissatisfactions," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201121, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    3. Zoltan J. Acs & Sameeksha Desai, 2007. "Democratic Capitalism and Philanthropy in a Global Economy," Jena Economic Research Papers 2007-056, Friedrich-Schiller-University Jena.
    4. George Holmes, 2012. "Biodiversity for Billionaires: Capitalism, Conservation and the Role of Philanthropy in Saving/Selling Nature," Development and Change, International Institute of Social Studies, vol. 43(1), pages 185-203, January.

    More about this item

    Keywords

    entrepreneurship; philanthropy; capitalism; knowledge;

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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