What Turns Knowledge into Innovative Products? The Role of Entrepreneurship and Knowledge Spillovers

29 Pages Posted: 21 Sep 2009

See all articles by Jorn H. Block

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Roy Thurik

Montpellier Business School; Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute

Haibo Zhou

University of Nottingham Ningbo China

Date Written: September 15, 2009

Abstract

The knowledge spillover theory of entrepreneurship seeks to explain the fundamentals and consequences of entrepreneurship with respect to economic performance. This paper uses the knowledge spillover theory to explain different innovation outcomes. We hypothesize that a high rate of entrepreneurship facilitates the process of turning knowledge into new-to-the-market innovation but has no effect on the relationship between knowledge and new-to-the-firm innovation. Our results using European country-level and pooled OLS, fixed- and random-effects regressions show that a high rate of entrepreneurship increases the chances that knowledge will become new-to-the-market innovation. The findings highlight the importance of Schumpeterian entrepreneurship in the process of the commercialization of knowledge. We discuss the implications for entrepreneurship and innovation policy.

Keywords: entrepreneurship, economic growth, innovation, technology policy, knowledge, knowledge spillovers, commercialization of knowledge, patents, community innovation survey

JEL Classification: O31, M, M13, O10, O32, O4, O30

Suggested Citation

Block, Jorn Hendrich and Thurik, Roy and Zhou, Haibo, What Turns Knowledge into Innovative Products? The Role of Entrepreneurship and Knowledge Spillovers (September 15, 2009). ERIM Report Series Reference No. ERS-2009-049-ORG. Available at SSRN: https://ssrn.com/abstract=1474585

Jorn Hendrich Block (Contact Author)

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Roy Thurik

Montpellier Business School

France

Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC) ( email )

3000 DR Rotterdam
Netherlands
+31 10 408 2232 (Phone)
+31 10 408 9146 (Fax)

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

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands
+31 79 341 3634 (Phone)
+31 79 331 3742 (Fax)

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Haibo Zhou

University of Nottingham Ningbo China ( email )

199 Taikang East Road
Ningbo, Zhejiang 315100
China
13989343590 (Phone)

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