The Realm of Entrepreneurship in the Market: Capital Theory, Production, and Change
Mises Working Paper Series, #0016/15
22 Pages Posted: 25 Feb 2015
Date Written: March 1, 2014
This paper drafts the space for the entrepreneurship function in the market process in terms of production. I elaborate on what is meant by the extent of the open market using compatibility/complementarity limitations of heterogeneous capital assets in production. Due to what I refer to as a conceptual ‘specialization deadlock’, markets emerge as dynamic adjustment processes without inherent ability to establish and incorporate productive innovation. Breaking new ground through pioneering innovation must take place outside the existent market. This, I propose, is the realm of the entrepreneur.
Keywords: entrepeneurship, capital theory, market process, innovation
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