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The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism

29 Pages Posted: 5 Oct 2007 Last revised: 18 Jun 2011

Zoltan J. Acs

Schar School of Policy and Government

David B. Audretsch

Indiana University - Institute for Development Strategies; King Saud University; WHU - Otto Beisheim School of Management; Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Ronnie J. Phillips

Colorado State University

Sameeksha Desai

George Mason University - School of Policy, Government, and International Affairs

Date Written: June 2007

Abstract

What differentiates American capitalism from all other forms of industrial capitalism is a historical focus on both the creation of wealth (entrepreneurship) and the reconstitution of wealth (philanthropy). Philanthropy has been part of the implicit American social contract that continuously nurtures and revitalizes economic prosperity. Much of the new wealth created historically has been given back to the community to build many of the great social institutions that have paved the way for future economic growth. This entrepreneurship-philanthropy nexus has not been fully explored by either economists or the general public. The purpose of this paper is to suggest that American philanthropists - particularly those who have made their own fortunes - create foundations that, in turn, contribute to greater and more widespread economic prosperity through knowledge creation. Analyzing philanthropy sheds light on our current understanding of how economic development has occurred, as well as the roots of American economic dominance.

Keywords: entrepreneurship, philanthropy, capitalism, knowledge

JEL Classification: D64, M13, M14

Suggested Citation

Acs, Zoltan J. and Audretsch, David B. and Phillips, Ronnie J. and Desai, Sameeksha, The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism (June 2007). Jena Economic Research Paper No. 2007-025; Hudson Institute Research Paper No. 07-04. Available at SSRN: https://ssrn.com/abstract=1019443 or http://dx.doi.org/10.2139/ssrn.1019443

Zoltan J. Acs (Contact Author)

Schar School of Policy and Government ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States
703-993-1780 (Phone)

HOME PAGE: http://home.ubalt.edu/zacs

David B. Audretsch

Indiana University - Institute for Development Strategies ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States
812-855-6766 (Phone)
812-855-0184 (Fax)

King Saud University ( email )

Riyadh, 11451
Saudi Arabia

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

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

1315 East Tenth Street
Bloomington, IN 47405
United States

Ronnie J. Phillips

Colorado State University ( email )

Fort Collins, CO 80523-1771
United States

HOME PAGE: http://www.ronniejphillips.com

Sameeksha Desai

George Mason University - School of Policy, Government, and International Affairs ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States

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