Entrepreneurship Capital and Economic Performance

David Audretsch and Max Keilbach

No 3678, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The neoclassical model of the production function, as applied by Robert Solow to build the neoclassical model of growth, linked labour and capital to output. More recently, Romer and others have expanded the model to include measures of knowledge capital. In this Paper we introduce a new factor, entrepreneurship capital, and link it to output in the context of a production function model. This Paper explains what is meant by entrepreneurship capital and why it should influence economic output. A production function model including several different measures of entrepreneurship capital is then estimated for German regions. The results indicate that entrepreneurship capital is a significant and important factor shaping output and productivity. These results suggest a new direction for policy that focuses on instruments to enhance entrepreneurship capital.

Keywords: Production function; Entrepreneurship capital; Regional economic performance (search for similar items in EconPapers)
JEL-codes: M13 O32 O47 (search for similar items in EconPapers)
Date: 2003-01
New Economics Papers: this item is included in nep-dev, nep-ent, nep-geo and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Journal Article: Entrepreneurship Capital and Economic Performance (2004)
Working Paper: Entrepreneurship Capital and Economic Performance (2004)
Working Paper: Entrepreneurship Capital and Economic Performance (2002)
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