Grossmann, Volker 2009 A fast growing empirical literature identifies an important role of entrepreneurs for productivity growth. This paper develops a simple overlapping-generations framework with endogenous occupational choice and productivity-enhancing entrepreneurial innovation. It shows that introducing these basic features into R&D-based growth theory has important implications. First, an equilibrium with price-taking firms can be supported despite a constant returns to scale production technology, once entrepreneurial human capital is accounted for. Second, in the proposed model, a larger size of the workforce capable to conduct R&D neither affects the long-run rate of economic growth (‘‘strong scale effect”) nor per capita income or welfare (‘‘weak scale effect”). Economic growth is sustained in the long-run and may be policy-dependent. application/pdf https://folia.unifr.ch/global/documents/323614 https://folia.unifr.ch/documents/323614/files/1-s2.0-s0164070409000032-main.pdf eng info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jmacro.2008.12.008 info:eu-repo/semantics/altIdentifier/issn/0164-0704 info:eu-repo/semantics/openAccess Rights reserved Journal of Macroeconomics. - Elsevier BV. - 2009, vol. 31, no. 4, p. 602-613 Endogenous growth Entrepreneurial skills Occupational choice Price-taking Scale effects Economics and Econometrics info:eu-repo/classification/udc/33 Entrepreneurial innovation and economic growth http://purl.org/coar/resource_type/c_6501