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Knowledge Spillover Entrepreneurship in an Endogenous Growth Model
- Source :
- Small Business Economics, 41(4), 775-795. Springer
- Publication Year :
- 2012
- Publisher :
- Elsevier BV, 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.
- Subjects :
- Economics and Econometrics
Entrepreneurship
Profit (accounting)
L26
media_common.quotation_subject
Research & development
O41
Commercialization
Endogenous growth (Economics)
Microeconomics
Spillover effect
Incentives
Economics
Residual claimant
Resource allocation
Manufacturing processes
Industrial organization
Innovation rents
media_common
Knowledge spillovers
O31
O33
Endogenous growth theory
Information economy
R&D
Economic rent
R58
General Business, Management and Accounting
Endogenous growth
Knowledge spillover
Incentive
Externalities
Externality
Subjects
Details
- ISSN :
- 15565068 and 0921898X
- Database :
- OpenAIRE
- Journal :
- SSRN Electronic Journal
- Accession number :
- edsair.doi.dedup.....fa89f03751ac2f060a4bf2e151e5dc16