Knowledge spillover entrepreneurship in an endogenous growth model.

Zoltan J. Acs, Mark W. J. L. Sanders*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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.
Original languageEnglish
Pages (from-to)775-795
Number of pages21
JournalSmall Business Economics
Volume41
Issue number4
DOIs
Publication statusPublished - 1 Dec 2013
Externally publishedYes

Keywords

  • Externalities
  • Entrepreneurship
  • Endogenous growth (Economics)
  • Research & development
  • Manufacturing processes
  • Resource allocation
  • Information economy
  • Endogenous growth
  • Incentives
  • Innovation rents
  • Knowledge spillovers
  • L26
  • O31
  • O33
  • O41
  • R&D
  • R58

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