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Schumpeter versus Kirzner: An empirical investigation of opportunity types

Jeroen de Jong and Orietta Marsili

No H201004, Scales Research Reports from EIM Business and Policy Research

Abstract: This paper empirically explores the distinction between Schumpeterian and Kirznerian opportunities by analyzing survey data of 184 high tech small business entrepreneurs. A multidimensional measure is developed documenting the extent in which entrepreneurial opportunities are either Schumpeterian or Kirznerian. It consists of five bipolar dimensions. We find that Schumpeterian opportunities are more likely to be pursued by innovative individuals with strong ambitions to grow their company. At the enterprise level, we find such opportunities in organizations with a strategic focus on proactive product development to satisfy future needs. Besides, Schumpeterian opportunities are found more often in relatively innovative organizations and pursued in rapidly growing markets. They seem to induce better growth in terms of sales and employment.

Pages: 27 pages
Date: 2010-01-13
New Economics Papers: this item is included in nep-cse, nep-ent and nep-sbm
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Citations: View citations in EconPapers (4)

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