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on Entrepreneurship |
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Issue of 2005‒10‒22
six papers chosen by Marcus Dejardin Facultés Universitaires Notre-Dame de la Paix |
| By: | Zoltan J. Acs; David B. Audretsch; Pontus Braunerhjelm; Bo Carlsson |
| Abstract: | Contemporary theories of entrepreneurship generally focus on the decision-making context of the individual. The recognition of opportunities and the decision to commercialize them is the focal concern. While the prevalent view in the entrepreneurship literature is that opportunities are exogenous, the most prevalent theory of innovation in the economics literature suggests that opportunities are endogenous. This paper bridges the gap between the entrepreneurship and economic literature on opportunity by developing a knowledge spillover theory of entrepreneurship. The basic argument is that knowledge created endogenously via R&D results in knowledge spillovers. Such spillovers give rise to opportunities to be identified and exploited by entrepreneurs. Our results show that there is a strong relationship between knowledge spillovers and new venture creation. |
| Keywords: | Opportunity, knowledge, entrepreneurship, management science |
| JEL: | O3 R1 J24 M13 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:esi:egpdis:2005-27&r=ent |
| By: | Josef Falkinger (University of Zurich, CESifo and IZA Bonn); Volker Grossmann (University of Zurich, CESifo and IZA Bonn) |
| Abstract: | This paper develops a model in which the interaction of entrepreneurial investments and power of the owners of land or other natural resources determines structural change and economic development. A more equal distribution of natural resources promotes structural change and growth through two channels: First, by weakening oligopsony power of owners and thereby easing entrepreneurial investments for credit-constrained individuals whose investment possibilities depend on their income earned in the primary goods sector. Second, by shifting the distribution of political power from resource owners towards the entrepreneurial elite, resulting in economic policy and institutions which are more conducive to entrepreneurship and productivity progress. We argue that these hypotheses are consistent with a large body of historical evidence from the Americas and with evidence on transition economies. |
| Keywords: | credit constraints, distribution, economic development, entrepreneurship, institutions, oligopsony power, political elites |
| JEL: | O10 H50 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1756&r=ent |
| By: | Luís Costa; Huw Dixon |
| Abstract: | We develop a dynamic general equilibrium model of imperfect competition where a sunk cost of creating a new product regulates the type of entry that dominates in the economy: new products or more competition in existing industries. Considering the process of product innovation is irreversible, introduces hysteresis in the business cycle. Expansionary shocks may lead the economy to a new ‘prosperity plateau,’ but contractionary shocks only affect the market power of mature industries. |
| Keywords: | Entry; Hysteresis; Mark-up. |
| JEL: | E62 L13 L16 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp162005&r=ent |
| By: | Robert Cull; Lance E. Davis; Naomi R. Lamoreaux; Jean-Laurent Rosenthal |
| Abstract: | We focus on the economies of the North Atlantic Core during the nineteenth and early twentieth centuries and find that an impressive variety of local financial institutions emerged to supply the needs of SMEs wherever there was sufficient demand for their services. Although these intermediaries had significant weaknesses, they were able to tap into local information networks and so extend credit to firms that were too young or small to secure funds from large regional or national institutions. In addition, by raising the return to savings for local households, they helped to mobilize significant new resources for economic development. |
| JEL: | G2 N2 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11695&r=ent |
| By: | Thierry Lallemand (Université Libre de Bruxelles, DULBEA and Centre de Comptabilité, Planning et Contrôle); François Rycx (Université Libre de Bruxelles, DULBEA and IZA Bonn) |
| Abstract: | We investigate how the wage distribution differs among small and large establishments in four European countries. Findings show that within-establishment wage dispersion rises with size because large employers have a more diverse workforce. They also suggest that screening and monitoring costs imply a lower sensitivity of wages to ability in larger establishments. Smaller establishments are found to rely more on incentive-based pay mechanisms, particularly in countries with a low trade union coverage rate. Further results indicate that between-establishment wage dispersion decreases with employer size because smaller establishments are technologically more diversified and hence exhibit greater diversity in average workforce skills. |
| Keywords: | wage structure, establishment size, decomposition of wages, Europe |
| JEL: | J21 J31 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1778&r=ent |
| By: | Tushar Poddar |
| Abstract: | India's exports nearly tripled in the 1990s. Decomposing export growth shows that it has been driven by incumbent firms rather than the entry of new firms. By using a new panel on Indian firms and estimating a dynamic discrete-choice model of the firm's decision to export, we find evidence that economic liberalization has led to greater domestic competition, spurring firm efficiency and increasing Indian firms' competitiveness and ability to export. We show that export growth has been an outcome of local firm innovation which has come about due to increased competitive pressure from FDI entry. |
| Keywords: | Competition , Exports , India , Trade , Economic models , |
| Date: | 2004–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:04/173&r=ent |