Innovative entrepreneurs are the prime movers of the economy. The innovative entrepreneur helps to overcome two types of institutional friction. First, existing firms may not innovate efficiently due to incumbent inertia resulting from adjustment costs, diversification costs, the replacement effect, and imperfect adjustment of expectations. The innovative entrepreneur compensates for incumbent inertia by embodying innovations in new firms that compete with incumbents. Second, markets for inventions may not operate efficiently due to transaction costs, imperfect intellectual property protections, costs of transferring tacit knowledge, and imperfect information about discoveries. The innovative entrepreneur addresses inefficiencies in markets for inventions through own-use of discoveries and adoption of innovative ideas. The Innovative Entrepreneur presents an economic framework that addresses the motivation of the innovative entrepreneur, the innovative advantage of entrepreneurs versus incumbent firms, the effects of competitive pressures on incentives to innovate, the consequences of creative destruction, and the contributions of the innovative entrepreneur to the wealth of nations.
An authoritative look at the microeconomics of entrepreneurship Entrepreneurs are widely recognized for the vital contributions they make to economic growth and general welfare, yet until fairly recently entrepreneurship was not considered worthy of serious economic study. Today, progress has been made to integrate entrepreneurship into macroeconomics, but until now the entrepreneur has been almost completely excluded from microeconomics and standard theoretical models of the firm. The Microtheory of Innovative Entrepreneurship provides the framework for introducing entrepreneurship into mainstream microtheory and incorporating the activities of entrepreneurs, inventors, and managers into standard models of the firm. William Baumol distinguishes between the innovative entrepreneur, who comes up with new ideas and puts them into practice, and the replicative entrepreneur, which can be anyone who launches a new business venture, regardless of whether similar ventures already exist. Baumol puts forward a quasi-formal theoretical analysis of the innovative entrepreneur's influential role in economic life. In doing so, he opens the way to bringing innovative entrepreneurship into the accepted body of mainstream microeconomics, and offers valuable insights that can be used to design more effective policies. The Microtheory of Innovative Entrepreneurship lays the foundation for a new kind of microtheory that reflects the innovative entrepreneur's importance to economic growth and prosperity.
Research Paper (undergraduate) from the year 2020 in the subject Business economics - Business Management, Corporate Governance, grade: A, , course: Business Administration, language: English, abstract: The paper is a record on the operation in development on the wider exploratory study right into Innovative entrepreneurship in Denmark, which aims to check out the arising patterns of Innovative entrepreneurship via the experience of people. Based on the literary works of Innovative entrepreneurship the emerging typology of academic entrepreneurship was established to help in choosing the sample. The analysis of the research study was divided right into the following groups: entrepreneurs academics, entrepreneurs scholastic experts, entrepreneurs scholars along instinctive entrepreneur. During the study few arising patterns of Innovative entrepreneurship in Denmark were acknowledged, which can be called 'design one ', 'professional one' and also a 'stretched one' depending upon the instructional, expert along with the experiential history of the business owners. The established patterns will absolutely lay the structure for added growth of training and also educational programs for possible entrepreneurs, supplying specialized cross-disciplined programs not just for students taking a look at entrepreneurship, company economics or organization, but additionally for the trainees from numerous other techniques, therefore improving the opportunity for producing Innovative entrepreneur. It will definitely also allow establishing the ways of utilizing the Innovative ability of people along with attracting them right into entrepreneurship in non-extreme, favorable conditions. This academic write-up meant to recognize the understandings of the phenomenon of the development of small business offered in the literary works as well as the viewpoint of future study studies. A literature testimonial was conducted in significant Journals of Entrepreneurship and Local Company Management, along with in the internet site studies. The material was at first categorized right into a number of categories, which represent the definitions of advancement, antecedents, and consequences. Hereafter category, a technique on the complexity of the feeling as well as on the point of views of study studies existed.
In an uncertain economy where business risk is significant, the company tends to rely more on its environment than to invest, for example, in all steps of technological creation; This can be explained by the fact that investments in the acquisition (ownership) of production resources are less expensive than those implied in the formation of these resources; which also explains the attractiveness (in an open economy) of regions with abundant scientific and technical resources. To understand and analyze the innovation process in order to better design and launch new goods, services and technologies, one has to consider the creative dimension of the individual, the business and the organization in general. In new approaches to innovation, the entrepreneur and the company are analyzed through their skills, and their function of resource generation; Innovation thus becomes endogenous, gradual or radical, integrated in a complex process with many feedbacks and interactions. The innovative organization (small or large) is presented in this book as a dynamic system composed of specific and diverse skills (including those of the contractor, engineers or managers). By acquiring, combining and mobilizing these skills, the innovative agent (entrepreneur or company) can create technological resources and develop relations with its environment. Hence the importance of management in design, implementation, protection of intellectual property as well as of the development of new goods, services and technology, commercial and organizational models.
Master's Thesis from the year 2009 in the subject Business economics - General, grade: 1.0, University of Bremen, language: English, abstract: Economic growth and technological changes are often triggered by innovative entrepreneurs who discover, exploit, and explore undetected opportunities. However, before entrepreneurs can move forward they need capital in order to realize their business idea. In general, investors can be characterized as the gatekeepers who provide this financial bottleneck resource to entrepreneurs. Venture capital firms, in particular, are a highly specialized group of investors which may also act as facilitators for innovations. Given that entrepreneurs and venture capitalists have been mostly studied in isolated cases, no integrative framework has yet been developed. Thus, this study aims to unfold the interconnectedness and dependencies of both parties and derives inter alia two important variables, namely strategic orientation and trust, which have been poorly studied in this field, but are crucial for the long‐term success of the relationship. The structure of this study corresponds with the process which is characteristic for the relationship between the venture capitalist and the entrepreneur: • The innovation process • The strategy dimension • The trust perspective This study uses an adapted gatekeeper‐model by Csikszentmihalyi to reveal the different stages of the innovation process and to build a theoretical framework of the relationship between both parties. Through the complexity and the interconnection of all the different aspects it is designed as a “door opener” to a rich field of further research as well as it is aimed at helping practitioners understand the innovation process within a complex and dynamic environment.
This book analyses prevailing approaches and policies in innovative entrepreneurship. It explores the ways in which entrepreneurs learn and develop innovation-based businesses to drive increased regional competitiveness. Specifically, the contributions propose that sustainable innovation ecosystems booster innovative entrepreneurship and thus create a competitive advantage for smart and sustainable growth. It also examines the current state of entrepreneurship education, where the development of entrepreneurial abilities is considered a process of value creation—both economic and social—with the final aim to create both new start-ups and entrepreneurial mind-sets.Featuring theoretical approaches and empirical evidences, this title is appropriate for scholars, academics, students and policy makers in technology and innovation management, economics of innovation and entrepreneurship.
Contents: 1. Innovation, Entrepreneurship and Culture, A Matter of Interaction between Technology, Progress and Economic Growth? An Introduction 2. Conceptualizing Innovation Management and Culture in the Hong Kong Special Administrative Region (HKSAR): An Exploratory Study of Organization-specific Critical Success Factors 3. Knowledge Management, Institutions and Professional Cultures in Engineering Consulting Services: The Case of Hong Kong 4. Scientometrics and the Evaluation of European Integration 5. Schumpeter's Theory of Economic Development Revisited 6. Skunk Works: A Sign of Failure, A Sign of Hope? 7. Entrepreneurship and the Design Process: The Paradox of Innovation in a Routine Design Process 8. Culture's Role in Entrepreneurship: Self-Employment out of Dissatisfaction 9. Towards Cooperation between European Start-ups: The Position of the French, Dutch and German Entrepreneurial and Innovative Engineer 10. Multi-path System Emergence: An Evolutionary Framework to Analyse Process Innovation IndexContributors: E. Baark, J.F. Boujut, T.E. Brown, I. Chan, A. Fayolle, K. Frenken, T. Fujimoto, G. Hofstede, J. Legardeur, L. Leydesdorff, N.G. Noorderhaven, N. Sharif, A.R. Thurik, H. Tiger, L.M. Uhlaner, J. Ulijn, R. Te Velde, A.R.M. Wennekers, R.E. Wildeman