Entrepreneurship Capital and Economic Growth

Posted: 25 Jun 2008

See all articles by David B. Audretsch

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)

Abstract

This paper shows how and why the Solow growth accounting framework is useful for linking entrepreneurship capital to economic growth. The knowledge filter impedes the spillover of knowledge for commercialization, thereby weakening the impact of knowledge investments on economic growth. By serving as a conduit for knowledge spillovers, entrepreneurship is the missing link between investments in new knowledge and economic growth. Entrepreneurship is an important mechanism permeating the knowledge filter to facilitate the spillover of knowledge and ultimately generate economic growth. The emergence of entrepreneurship policy to promote economic growth is interpreted as an attempt to promote entrepreneurship capital, or the capacity of an economy to generate the start-up and growth of new firms.

Keywords: entrepreneurship, growth, knowledge spillovers, Solow

JEL Classification: O4, O3, E0, L26

Suggested Citation

Audretsch, David B., Entrepreneurship Capital and Economic Growth. Oxford Review of Economic Policy, Vol. 23, No. 1, pp. 63-78, 2007, Available at SSRN: https://ssrn.com/abstract=1151112 or http://dx.doi.org/10.1093/oxrep/grm001

David B. Audretsch (Contact Author)

Indiana University - Institute for Development Strategies ( email )

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King Saud University ( email )

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WHU - Otto Beisheim School of Management ( email )

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

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Bloomington, IN 47405
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