Knowledge Spillover Entrepreneurship in an Endogenous Growth Model
51 Pages Posted: 18 Jul 2013
Date Written: December 10, 2012
Abstract
This paper challenges the key assumption in "idea based growth models" that innovation rents ultimately reward the creation of knowledge. In modern capitalist economies the agents that commercialize new ideas, the entrepreneurs, receive the bulk of the innovation rents and are generally the residual claimant. We develop a model that separates invention from innovation where new ideas are a costless spillover from profit motivated corporate R&D aimed at improving existing production processes. We then show that a central planner can improve over the decentralized equilibrium by reallocating resources between R&D and entrepreneurship. The optimal allocation between commercializers and inventors depends on the relative strength of down- and upstream knowledge spillovers.
Keywords: Innovation Rents, Endogenous Growth, R&D, Entrepreneurship, Incentives, Knowledge Spillovers
JEL Classification: L26, O31, O33, O41, R58
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Knowledge Spillover Theory of Entrepreneurship
By Zoltan J. Acs, David B. Audretsch, ...
-
Entrepreneurship, Innovation and Technological Change
By Zoltan J. Acs and David B. Audretsch
-
The Knowledge Filter, Entrepreneurship, and Economic Growth
By Bo Carlsson, Zoltan J. Acs, ...
-
The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth
By Zoltan J. Acs, David B. Audretsch, ...
-
Entrepreneurship Capital and Economic Performance
By David B. Audretsch and Max Keilbach
-
Why so Many Local Entrepreneurs?
By Claudio Michelacci and Olmo Silva
-
Entrepreneurs from Technology-Based Universities
By David H. Hsu, Edward B. Roberts, ...
-
The Theory of Knowledge Spillover Entrepreneurship
By David B. Audretsch and Max Keilbach
-
Entrepreneurship and the Process of Firms' Entry, Survival and Growth
By Enrico Santarelli and Marco Vivarelli