nep-ino New Economics Papers
on Innovation
Issue of 2005‒06‒19
eight papers chosen by
Koen Frenken
Universiteit Utrecht

  1. The Economics of Entrepreneurship: What We Know and What We Don't By Simon C Parker
  2. Two Theories of Entrepreneurship: Alternative Assumptions and the Study of Entrepreneurial Action By Sharon A. Alvarez
  3. Where in Entrepreneurship Research Heading? By Scott Shane
  4. Entrepreneurship and Innovation By Zoltan J. Acs; David B. Audretsch
  5. Firm Level Implications of Early Stage Venture Capital Investment - An Empiri cal Investigation By Max Keilbach; Dirk Engel
  6. Exploration and exploitation strategies. What kind of analytical models ? By Nadia Jacoby
  7. Evolutionary analysis of the firm and internal selection By Nadia Jacoby
  8. Measuring Education Levels of Farmers: Evidence from Innovation Adoption in Bangladesh By Masakazu Hojo

  1. By: Simon C Parker
    Abstract: This introductory, non-technical, article offers a reflective overview of what Economics adds to our understanding of entrepreneurship. It is designed primarily to showcase to young entrepreneurship scholars several interesting research questions and a toolbox of methods to answer them. First, I will illustrate the kinds of questions that can be posed and answered using Economics. Then I will present and discuss a selective list of "canonical" theoretical and empirical models that form the intellectual bedrock of the Economics of Entrepreneurship. After that, I present and discuss some well-established theoretical contributions and empirical findings that have been generated by the approach. I conclude by discussing aspects of "What we don't know" and should. This part of the article identifies several ideal future trends in research that build on and complement the foundations of entrepreneurship that are delineated in the main body of the article.
  2. By: Sharon A. Alvarez
  3. By: Scott Shane
  4. By: Zoltan J. Acs; David B. Audretsch
  5. By: Max Keilbach; Dirk Engel
    Abstract: The paper analyses the impact of venture capital finance on growth and innovation activities of young German firms. Among other variables, our panel of firm data includes data on venture capital funding and patent applications. With statistical matching procedures we draw an adequate control group of non­venture funded but otherwise comparable firms. The analysis confirms other findings that venture funded firms in Germany have higher number of patent applications than those in the control group. However, they do so already before the venture capitalists engagement. After this engagement, the number of patent applications does not differ significantly from that of the control group, however the venture funded firms display significantly larger growthrates. We conclude that the higher innovation output of venture funded firms is mainly driven by the selection process made by the venture capitalist.
    Keywords: Firm Demography, Firm Start­Ups, Firm Growth, Venture Capital, Patented Inventions, Microeconometric Evaluation Methods
    JEL: L21 D21 D92 C14 C33
  6. By: Nadia Jacoby (MATISSE)
    Abstract: This paper gives some insights related to the combination of exploration and exploitation behaviors. A recurrent question for firms deals with this blend of exploration and exploitation mechanisms. Firms are engaged in new activities like research and at the same time in more routine ones like development and production. Thus, they should find a satisfying arrangement between exploitation. But in order to do that, they should better understand their working. This paper analyzes adaptive systems through exploration and exploitation behaviors of firms. In order to better understand the temporal articulation of those behaviors, we refer to a mapping representation of search processes using NK models (Kauffman, 1993).
    Keywords: Evolutionary approaches of firms, exploration and exploitation behaviors, NK models
    JEL: C63 L21
    Date: 2005–05
  7. By: Nadia Jacoby (MATISSE)
    Abstract: Evolutionary approaches of the firm devote a part of their analysis to firm behavior and to some processes acting inside the firm , however the internal workings of firms are, most of the time, not deeply analyzed. In this perspective, this paper attemps to investigate whether Ç we can drop internal selection in the evolutionary analysis of the firm È. In ordre to answer this question, we propose a micro-simulation model of internal selection where firms are engaged in production and R&D activities. They carry out two kinds of R&D and do not run any imitation process. Internal selection acts on R&D projects and we measure the impact of the selection mechanism on the firm's performances. The model generates persistent differences between firms according to their internal selection process.
    Keywords: Innovation, internal selection, market dynamics, R&D, technological performance
    JEL: C63 L11 L21 O32
    Date: 2005–05
  8. By: Masakazu Hojo (Osaka School of International Public Policy, Osaka University)
    Abstract: Education levels of farmers have been measured in a variety of ways in preceding studies. In order to examine whether or not different measures of education have different effects on the behavior of farmers, I first summarize the measures of education and then perform an empirical analysis. Although education measures examined in this paper have been used in many studies, their effects are shown to differ significantly in my empirical analysis: some variables have positive impacts on farmerfs behavior while others do not. This result suggests we have to pay more attention to selecting measures of education in empirical investigations.
    Keywords: Education; Agriculture; Technology adoption; Bangladesh
    JEL: I20 Q12 Q16
    Date: 2004–03

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