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1-s2.0-s0164070409000032-main
Journal article

Entrepreneurial innovation and economic growth

BP2-STS

  • 2009
Published in:
  • 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
English 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.
Faculty
Faculté des sciences économiques et sociales et du management
Department
Département d'économie politique
Language
  • English
Classification
Economics
License
Rights reserved
Open access status
green
Identifiers
Persistent URL
https://folia.unifr.ch/unifr/documents/323614
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