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Knowledge spillover entrepreneurship in an endogenous growth model

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Abstract

We present a model that separates entrepreneurship from profit-motivated corporate R&D aimed at improving existing production processes. Our model embeds the core idea of the knowledge spillover theory of entrepreneurship in established knowledge-based growth models by enriching their knowledge spillover structure. Introducing knowledge spillovers drives a wedge between the optimal and market allocation of resources between new knowledge creation and commercialization. We show the first best allocation depends exclusively on the relative strength of knowledge spillovers between them and derive propositions to guide policy that can bring the market equilibrium closer to this optimum. Copyright Springer Science+Business Media New York 2013

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  • Zoltan Acs & Mark Sanders, 2013. "Knowledge spillover entrepreneurship in an endogenous growth model," Small Business Economics, Springer, vol. 41(4), pages 775-795, December.
    • Handle: RePEc:kap:sbusec:v:41:y:2013:i:4:p:775-795
    DOI: 10.1007/s11187-013-9506-8
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    More about this item

    Keywords

    Innovation rents; Endogenous growth; R&D; Entrepreneurship; Incentives; Knowledge spillovers; L26; O31; O33; O41; R58;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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