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Entrepreneurship, Organization Capital, and the Evolution of the Firm

Atsushi Oshima, B Ravikumar and Raymond Riezman
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Atsushi Oshima: University of Iowa

A chapter in International Trade and Economic Dynamics, 2009, pp 499-511 from Springer

Abstract: We view the entrepreneur as an agent who possesses human capital in the form of specific skills or talents. When she starts a firm, her human capital is essential to the firm and it has substantial private value. The entrepreneur transforms her human capital over time into what we call “organization capital.” This organization capital can be sold as part of the firm, and so the dynamic process of transforming specific human capital into organization capital means that the value of the firm increases over time.

Keywords: Human Capital; National Account; Political Econ; Spot Market; Capital Ratio (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1007/978-3-540-78676-4_32

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