The Process of Creative Construction: Knowledge Spillovers, Entrepreneurship and Economic Growth

Agarwal, Rajshree; Audretsch, David B.; Sarkar, M. B.

Download This Paper

Open PDF in Browser

Add Paper to My Library

The Process of Creative Construction: Knowledge Spillovers, Entrepreneurship and Economic Growth

Strategic Entrepreneurship Journal, Forthcoming

46 Pages Posted: 7 Nov 2007

See all articles by Rajshree Agarwal

Rajshree Agarwal

University of Maryland - Robert H. Smith School of Business

David B. Audretsch

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

M. B. Sarkar

University of Central Florida - College of Business Administration

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.

Keywords: entrepreneurship, economic growth, knowledge spillovers, creative construction

JEL Classification: D62, J24, M13, O32

Suggested Citation: Suggested Citation

Agarwal, Rajshree and Audretsch, David B. and Sarkar, M. B., The Process of Creative Construction: Knowledge Spillovers, Entrepreneurship and Economic Growth. Strategic Entrepreneurship Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1027901