By Zoltan J. Acs, David B. Audretsch, Robert J. Strom
Whereas the general public coverage group has became to entrepreneurship to take care of, repair, or generate financial prosperity, the economics occupation has been remarkably taciturn in offering assistance for public coverage for knowing the hyperlinks among entrepreneurship and monetary progress in addition to for framing and weighing coverage matters and judgements. the aim of this quantity is to supply a lens during which public coverage judgements concerning entrepreneurship may be guided and analyzed. particularly, this quantity presents insights from major study in regards to the hyperlinks among entrepreneurship, innovation, and monetary progress that make clear implications for public coverage. The publication makes transparent either how and why small organizations and entrepreneurship have emerged as the most important to financial progress, employment, and competitiveness in addition to the mandate for public coverage within the entrepreneurial society.
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Extra info for Entrepreneurship, Growth, and Public Policy
Examples are legion: Ford with the mass production of the automobile, which had seen a long line of inventors before;2 Boeing, Lockheed, McDonnellDouglas, and Airbus with the airplane that was invented by the Wright brothers; IBM with the mainframe computer that was designed at the University of Pennsylvania; Dell with the personal computer that had been developed by Apple; Microsoft with the PC operating system that was created by Gary Kildall; and large pharmaceutical companies, which have the resources to conduct the expensive and time-consuming clinical trials on breakthrough therapies invented in universities and in small companies.
Governments can also support industries through protective measures such as tariffs, insulating domestic companies from foreign competition. In addition, governments can guide the activities of foreign investors or partners, allowing them only in certain sectors and under certain conditions (commonly, that the foreign partner share and eventually transfer its technology and know-how to the local partner). State-driven capitalism should not be confused with central planning. In centrally planned economies, the state not only picks winners, but it also owns the means of production, sets all prices and wages, often cares little about what consumers may want, and thus provides essentially no incentive for innovation that benefits the individual.
Alvin Hansen marvelously surveys this chapter of economic thought (1951, chap. 16). He explains that in introducing knowledge shocks Spiethoff was not repeating but was paralleling Michel Tugan-Baranowski’s work on financial shocks to investment. Cassel, 1924, quotation p. 622. Phelps and Zoega (2001) build on Cassel. Toward a Model of Innovation and Performance 37 Comparative evidence on dynamism. Empirically, the kind of economic system in place does appear to make a difference for dynamism. A few central European economies twice became laboratories in recent decades for testing competition without private ownership.