The Use of Knowledge in Technology Entrepreneurship: A Theoretical Foundation

Posted: 7 Aug 2017

See all articles by Russell S. Sobel

Russell S. Sobel

The Citadel - School of Business

J. R. Clark

The University of Tennessee at Chattanooga

Date Written: December 30, 2016

Abstract

While technology entrepreneurship has been widely recognized as a driver of economic growth, there exists little in the way of a unified framework for understanding technology entrepreneurship and assessing its value proposition, particularly when network externalities and information are involved. In this paper we bring together several strands of literature and identify the components that form a foundation for understanding modern technology entrepreneurship. In particular, technology functions as a capital good that embodies knowledge about performing productive tasks, and the value of this knowledge depends on how well it is able to utilize decentralized local knowledge and spontaneous orders.

Keywords: Entrepreneurship, Technology venturing, Embodied knowledge, Local knowledge, Truthful revelation, Reputational information and technology, Spontaneous order, Network effects, Path-dependence

JEL Classification: O31

Suggested Citation

Sobel, Russell S. and Clark, Jeff R., The Use of Knowledge in Technology Entrepreneurship: A Theoretical Foundation (December 30, 2016). Review of Austrian Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3013629

Russell S. Sobel

The Citadel - School of Business ( email )

171 Moultrie St.
Charleston, SC 29409
United States

Jeff R. Clark (Contact Author)

The University of Tennessee at Chattanooga ( email )

Department of Economics
Suite 313 Fletcher Hall
Chattanooga, TN 37403-2598
United States

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