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on Technology and Industrial Dynamics |
| By: | Richard N. Langlois (University of Connecticut) |
| Abstract: | The entrepreneurial theory of the firm argues that entrepreneurship, properly understood, is a crucial but neglected element in explaining the nature and boundaries of the firm. By contrast, the theory of the entrepreneurial firm presumably seeks not to understand the nature and boundaries of “the firm†in general but rather to understand a particular type of firm: one that is entrepreneurial. This paper is an attempt to reconcile the two. After briefly delving for the concept of entrepreneurship in the work of Schumpeter, Kirzner, and (especially) Knight, the paper makes the case for the entrepreneurial theory of the firm. In such a theory, the firm exists as the solution to a coordination problem in a world of change and uncertainty, including Knightian or structural uncertainty. Taking a historical or developmental perspective, the paper then examines the changing nature of the entrepreneurial coordination problem over the life-cycle. In this formulation, “the entrepreneurial firm†is a nascent firm or proto-firm facing a problem of coordinating systemic change in economic capabilities. Lacking (by definition) adequate guidance from existing systems of rules of conduct embedded in markets or organizations, the entrepreneurial firm typically relies on a form of organization Max Weber called charismatic authority. In the end, although there is no such thing as a non-entrepreneurial firm, firms that must solve coordination problems in a world of novelty and systemic change ("entrepreneurial firmsâ€) are perhaps the purest case of the entrepreneurial theory of the firm. |
| Keywords: | entrepreneurship, transaction costs, coordination, Coase, Knight, Schumpeter, Weber. |
| JEL: | B25 L22 M13 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2005-27&r=tid |
| By: | Masurel, Enno (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics) |
| Abstract: | This paper discusses the use of patent information by innovative SMEs. The standard literature tends to focus on obtaining patents; studies of using patent information for different purposes are underrepresented in the innovation literature. Studying the case of SMEs is especially interesting, because they often do not have in-house specialists dealing with patent issues. Our research reveals that the most important reasons why SMEs do not use patent information are: (i) costs; (ii) unclear procedures. These constraints may be tackled by improving the communication on the usefulness of patent information, improving access to patent information, and integrating more lessons on using patent and patent information in education. Given that using patent information is useful for SMEs, its use should be promoted. The key players in this respect are NIPO (the Dutch organization responsible for patents and patent information), trade associations, and educational institutions. |
| Keywords: | SMEs; entrepreneurship; innovation; patents; patent information |
| JEL: | O34 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:vuarem:2005-2&r=tid |
| By: | Gerard J. van den Berg (Free University Amsterdam, IFAU Uppsala, CEPR, Tinbergen Institute, INSEE-CREST and IZA Bonn) |
| Abstract: | In markets with imperfect information and heterogeneity, the information technology affects the rate at which agents meet, which in turn affects the distribution of production technologies across firms. We show that in models for such markets there are typically multiple equilibria because reservation utility levels and the lowest production technology in use affect each other. The adoption of novel information technologies may then entail a revolution in the sense of a move from an inefficient to an efficient equilibrium. Inefficient production technologies are removed even in sectors where the new information technology has only recently been introduced. The effect is much larger than a marginal comparative-statics effect on a given equilibrium. The results apply to markets for consumer products, labor, intermediate goods, and (public) institutional services. |
| Keywords: | imperfect information, heterogeneity, production technology, informational frictions |
| JEL: | D43 D83 L11 L15 O33 J42 L86 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1655&r=tid |
| By: | Joana Costa (Faculdade de Economia, Universidade do Porto); Aurora A. C. Teixeira (CEMPRE, Faculdade de Economia, Universidade do Porto) |
| Abstract: | Within a debatable framework of ‘natural replication’ of well-succeeded cases such as the Silicon Valley, Route 128, OECD countries have been implementing policy measures directed to the stimulation of the development of regional clusters composed by Technology-Intensive Firms (TIF) around universities believing that this would increase economic returns from public research investment thereby fostering regional economic development. That is because knowledge-based goods and services are highly valuated by consumers and the TIF can increase the rate of innovation in the economy as a whole. Thus, the creation of science parks, the support of business incubators, seed capital, specific supports for the development of joint R&D projects are sponsored by public authorities as an effort to link universities to industrial innovation. This investigation tries an empirical answer to the following questions: 1) Are universities important as source of information and knowledge use for TIF innovation activities?; 2) How relevant are universities for the location decisions of TIF?; Is TIF’s human capital composition a relevant variable for strengthening university-TIF linkages and thus contributing for enhancing regional innovation capabilities? Based on survey data of Portuguese TIF (composed by 425 firms from a total of 728 that reported having performed R&D activities in 2001-2003), and contrasting with Community Innovation Survey (CIS) related evidence, we conclude that university is critical to these firms innovative activities being therefore likely to substantially and positively impact on regional knowledge network flows and density. The evidence collected shows therefore an unequivocal support for public policies measures targeting TIF as innovation leverages and regional boosters. |
| Keywords: | technology intensive firms, universities linkages, Portugal |
| JEL: | O31 O32 O38 C25 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:181&r=tid |