Entrepreneurship in the USA: architecture, market structure and incentives

Demetri Kantarelis

International Journal of Entrepreneurship and Innovation Management, 2009, vol. 9, issue 3, 191-203

Abstract: The purpose of this paper is threefold: to add to the description of the architecture of the US entrepreneurial system originally charted by Schramm (2004), discuss the link between market structure and innovation and stress the significance of incentives for invention and innovation. It is stated that entrepreneurship in the USA is governed by five factors: (1) venture funding, as well as personal savings and capital democratisation, (2) established large firms, (3) government, (4) universities and (5) ecosystems. In turn, the paper reexamines, theoretically, the assertions that (a) although less competitive firms can realise significant profits from innovations, they bring them to market late and (b) more competitive firms are more likely to pursue cost-reducing process innovation. Finally, the paper focuses on society's motivation to grant patents, copyrights and trademarks as incentives for inventive and innovative activity. Although the paper adds to the architecture mentioned above, its contribution is mostly pedagogical in nature; it is hoped that it would be of some value to students in business and economics, as well as to entrepreneurs, business managers and governmental agents who are in charge of business and economic development.

Keywords: entrepreneurship; market structure; incentives; USA; United States; invention; innovation; patents; copyrights; trademarks; pedagogy. (search for similar items in EconPapers)
Date: 2009
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