Linking entrepreneurship to growth

This paper provides a link between the degree of entrepreneurial activity in a country and the growth performance. While a recent wave of empirical evidence suggests that the extent to which countries have shifted towards an increased role of entrepreneurship varies considerably across countries, virtually nothing is known about the consequences of lagging behind in this process. Do countries that have shifted towards a greater role for entrepreneurship enjoy greater growth? This question is crucial to policy makers, because if the opportunity cost, measured in terms of forgone growth, of a slow adjustment towards a greater role for entrepreneurship is relatively low, the consequences of not engaging in a rapid adjustment process are relatively trivial. However, if the opportunity cost is high, the consequences are more alarming. This paper offers two distinct approaches, based on two different measures of entrepreneurship – the relative share of economic activity accounted for by ... Liens entre entreprenariat et croissance Ce rapport se penche sur les liens qui unissent le degre d’entreprenariat d’un pays et le dynamisme de sa croissance. Si une recente deferlante de donnees empiriques semble indiquer que la mesure dans laquelle les pays developpent l’entreprenariat varie sensiblement d’un pays a l’autre, on ne sait pratiquement rien des consequences qui peuvent decouler d’un retard en la matiere. Les pays ou l’entreprenariat a gagne en importance beneficient-ils d’une croissance plus forte ? Cette question est vitale pour les decideurs car si le cout d’opportunite, mesure en termes de moindre croissance, d’une adaptation lente au developpement de l’entreprenariat est relativement faible, les consequences d’une non participation a un processus d’adaptation rapide sont relativement insignifiantes. En revanche, si le cout d’opportunite est eleve, les consequences sont plus inquietantes. Ce rapport propose deux methodes distinctes, fondees sur deux mesures differentes de l’entreprenariat – la part ...

[1]  D. Audretsch.  Innovation and Industry Evolution , 1995 .

[2]  W. Scott,et al.  Tracking the Giant Corporation@@@Scale and Scope: The Dynamics of Industrial Capitalism. , 1991 .

[3]  AnnaLee Saxenian,et al.  Regional Networks and the Resurgence of Silicon Valley , 1990 .

[4]  Scott D. Schuh,et al.  Job Creation and Destruction , 1997 .

[5]  David J. Storey,et al.  Cross-national Comparisons of the Variation in New Firm Formation Rates , 1994 .

[6]  J. Bound,et al.  IMPLICATIONS OF SKILL-BIASED TECHNOLOGICAL CHANGE: INTERNATIONAL EVIDENCE* ELI BERMAN , 1998 .

[7]  Maryann P. Feldman,et al.  R&D spillovers and recipient firm size , 1994 .

[8]  Wilbur R. Maki,et al.  Explaining regional variation in business births and deaths: U.S. 1976–88 , 1995 .

[9]  David B. Audretsch,et al.  Competition policy in dynamic markets , 2001 .

[10]  Irwin Feller,et al.  Federal and State Government Roles in Science and Technology , 1997 .

[11]  M. Carree,et al.  Small business and job creation: A comment , 1996 .

[12]  Z. Griliches.  The Search for R&D Spillovers , 1991 .

[13]  Roy Thurik,et al.  Erim Report Series Research in Management What's New about the New Economy? Sources of Growth in the Managed and Entrepreneurial Economies Bibliographic Data and Classifications , 2022 .

[14]  M. Feldman,et al.  R&D spillovers and the ge-ography of innovation and production , 1996 .

[15]  M. C. Jensen,et al.  The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems , 1993, A Theory of the Firm.

[16]  Edward L. Glaeser,et al.  Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach , 1997 .

[17]  E. Glaeser,et al.  Growth in Cities , 1991, Journal of Political Economy.

[18]  P. Krugman.  Geography and Trade , 1992 .

[19]  Boyan Jovanovic,et al.  An Estimated Model of Entrepreneurial Choice under Liquidity Constraints , 1989, Journal of Political Economy.

[20]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[21]  Paul M. Romer,et al.  The Origins of Endogenous Growth , 1994 .

[22]  Robert E. Lucas,et al.  On the Size Distribution of Business Firms , 1978 .

[23]  A. Jaffe.  Real Effects of Academic Research , 1989 .

[24]  B. Kogut,et al.  The Exploration of Technological Diversity and the Geographic Localization of Innovation , 1997 .

[25]  Roy Thurik,et al.  Linking Entrepreneurship and Economic Growth , 1999 .

[26]  Paula E. Stephan,et al.  Company-Scientist Locational Links: The Case of Biotechnology , 1996 .

[27]  Zvi Griliches,et al.  Issues in Assessing the Contribution of Research and Development to Productivity Growth , 1979 .

[28]  S. Winter,et al.  An evolutionary theory of economic change , 1983 .

[29]  Gary W. Loveman,et al.  The re-emergence of small-scale production: An international comparison , 1991 .

[30]  Eric J. Bartelsman,et al.  Downsizing and productivity growth: Myth or reality? , 1994 .

[31]  Steven J. Davis,et al.  Small business and job creation: Dissecting the myth and reassessing the facts , 1994, Labor Markets, Employment Policy, and Job Creation.

[32]  Z. Ács,et al.  Innovation and Small Firms , 1990 .

[33]  Martha Prevezer,et al.  The Dynamics of Industrial Clustering in Biotechnology , 1997 .

[34]  P. Romer.  Endogenous Technological Change , 1989, Journal of Political Economy.

[35]  Jacob Viner,et al.  Cost curves and supply curves , 1932 .

[36]  G. Dosi.  Sources, Procedures, and Microeconomic Effects of Innovation , 1988 .

[37]  David S. Evans,et al.  Small business formation by unemployed and employed workers , 1990 .

[38]  Frederic M. Scherer,et al.  Schumpeter and Plausible Capitalism , 1992 .

[39]  M. Carree.  Market dynamics, evolution and smallness , 1997 .

[40]  Steven Klepper,et al.  The tradeoff between firm size and diversity in the pursuit of technological progress , 1992, Small Business Economics.

[41]  Roy Thurik,et al.  Market dynamics in the Netherlands: Competition policy and the role of small firms , 2001 .

[42]  David B. Audretsch,et al.  Small firms and entrepreneurship : an East-West perspective , 1994 .

[43]  P. Geroski.  What do we know about entry , 1995 .

[44]  Josh Lerner,et al.  Stronger Protection or Technological Revolution: What is Behind the Recent Surge in Patenting? , 1997 .

[45]  M. Carree,et al.  Impeded Industrial Restructuring: The Growth Penalty , 2000 .

[46]  Sidney G. Winter,et al.  Schumpeterian Competition in Alternative Technological Regimes , 1983 .

[47]  N. Kaldor,et al.  The Equilibrium of the Firm , 1934 .

[48]  R. Caves.  Industrial Organization and New Findings on the Turnover and Mobility of Firms , 1998 .

[49]  K. Arrow.  Economic Welfare and the Allocation of Resources for Invention , 1962 .

[50]  Paul D. Reynolds,et al.  Who Starts New Firms? – Preliminary Explorations of Firms-in-Gestation , 1997 .