Knowledge spillover entrepreneurship in an endogenous growth model

Zoltan Acs and Mark Sanders

Small Business Economics, 2013, vol. 41, issue 4, 775-795

Abstract: We present a model that separates entrepreneurship from profit-motivated corporate R&D aimed at improving existing production processes. Our model embeds the core idea of the knowledge spillover theory of entrepreneurship in established knowledge-based growth models by enriching their knowledge spillover structure. Introducing knowledge spillovers drives a wedge between the optimal and market allocation of resources between new knowledge creation and commercialization. We show the first best allocation depends exclusively on the relative strength of knowledge spillovers between them and derive propositions to guide policy that can bring the market equilibrium closer to this optimum. Copyright Springer Science+Business Media New York 2013

Keywords: Innovation rents; Endogenous growth; R&D; Entrepreneurship; Incentives; Knowledge spillovers; L26; O31; O33; O41; R58 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (34)

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Chapter: Knowledge spillover entrepreneurship in an endogenous growth model (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:41:y:2013:i:4:p:775-795

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DOI: 10.1007/s11187-013-9506-8

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