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Sources of Growth

Author

Listed:
  • David Audretsch

    (The Georgia State University)

  • Roy Thurik

    () (Erasmus University Rotterdam)

Abstract

The purpose of this paper is to suggest that a fundamental shift in Europe, along with the other OECD countries, is taking place. This shift is from the managed economy to the entrepreneurial economy. While politicians and policy makers have made a plea for guidance in the era of entrepreneurship,scholars have been slow to respond. The purpose of this paper is to make a first step identifying and articulating these differences. We do this by contrasting the most fundamental elements of the newly emerging entrepreneurial economy with those of the managed economy. We identify fifteen trade-offs confronting these two polar worlds. The common thread throughout these trade-offs is the increased role of new and small enterprises in the entrepreneurial economy. A particular emphasis is placed on changes in economic policy demanded by the entrepreneurial economy vis-à-vis the managed economy. We then explore whether restructuring towards the entrepreneurial economy has been conducive to economic growth and job creation. Our empirical analysis links the stage of the transition towards an entrepreneurial economy to the growth rates of European countries over a recent period. We find that those countries which have introduced a greater element of entrepreneurship have been rewarded with additional growth.

Suggested Citation

  • David Audretsch & Roy Thurik, 0000. "Sources of Growth," Tinbergen Institute Discussion Papers 97-109/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:19970109
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    File URL: http://papers.tinbergen.nl/97109.pdf
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    References listed on IDEAS

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    Cited by:

    1. Branko Milanovic, 2005. "Global Income Inequality: What It Is And Why It Matters?," HEW 0512001, EconWPA.
    2. Boris CHISTRUGA & Rodica CRUDU, 2011. "Economic Disparity and Global Governance Failures – the Most Important Risks in the Coming Decade," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 18-25.

    More about this item

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
    • L0 - Industrial Organization - - General

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