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The Process of Creative Construction: Knowledge Spillovers, Entrepreneurship and Economic GrowthRajshree AgarwalUniversity of Maryland - Robert H. Smith School of Business David B. AudretschIndiana University - Institute for Development Strategies; King Saud University; WHU - Otto Beisheim School of Management; Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) M. B. SarkarUniversity of Central Florida - College of Business Administration Strategic Entrepreneurship Journal, Forthcoming Abstract: Questioning the underlying assumptions of the process of creative destruction, we conceptualize an alternative process of creative construction that may characterize the dynamics between entrants and incumbents. We discuss the underlying mechanism of knowledge spillover strategic entrepreneurship whereby knowledge investments by existing organizations, when coupled with entrepreneurial action by individuals embedded in their context, results in new venture creation, heterogeneity in performance and subsequent growth in industries, regions and economies. The framework has implications for future research in entrepreneurship, strategy and economic growth.
Number of Pages in PDF File: 46 Keywords: entrepreneurship, economic growth, knowledge spillovers, creative construction JEL Classification: D62, J24, M13, O32 Accepted Paper SeriesDate posted: November 7, 2007Suggested CitationContact Information
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