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Entrepreneurship, Opportunity, and Growth

18 Pages Posted: 13 Apr 2009 Last revised: 3 Nov 2009

Philip E. Auerswald

George Mason University - Schar School of Government and Policy

Date Written: May 8, 2008

Abstract

This papers contrasts "invention-to-growth" policies derived from macroeconomic models with "opportunity-to-growth" policies suggested by consideration of microeconomic fundamentals. I focus on the effectiveness of opportunity exploitation by entrepreneurs relative to established incumbents - in particular, how the relative "price of entry" depends on the magnitude of interaction costs, which I define as the sum of conventionally defined transactions costs and additional costs of validation and search attributable to asymmetries of information. I further emphasize the manner in which new tools of communication and collaboration are rapidly changing interaction costs, with implications for the intensity and direction of entrepreneurial effort.

Suggested Citation

Auerswald, Philip E., Entrepreneurship, Opportunity, and Growth (May 8, 2008). Available at SSRN: https://ssrn.com/abstract=1376427 or http://dx.doi.org/10.2139/ssrn.1376427

Philip Edgar Auerswald (Contact Author)

George Mason University - Schar School of Government and Policy ( email )

3351 Fairfax Dr.
Arlington, VA 22201
United States

HOME PAGE: http://auerswald.org

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