Is Neoclassical Economics still Entrepreneurless

Published on Jul 1, 2005in Kyklos1.674
· DOI :10.1111/j.0023-5962.2005.00292.x
Milo Bianchi9
Estimated H-index: 9
(University of Toulouse),
Magnus Henrekson36
Estimated H-index: 36
(Research Institute of Industrial Economics)
The paper reviews and evaluates some recent contributions on modeling entrepreneurship within a neoclassical framework, analyzing how, and to what extent, the fundamental ingredients suggested in the social science literature were captured. It is shown how these approaches are important in stressing the main elements of a complex picture, without being able to fully describe it. Each modeling attempt focuses only on one specific feature of entrepreneurship, and the entrepreneurial function, broadly perceived, eludes analytical tractability. As a consequence, the models can be useful in analyzing the effect of entrepreneurial behavior at an aggregate level, but not at explaining individual choices. From these observations, it is highlighted how a simplistic interpretation of the existing mainstream approaches incorporating entrepreneurship runs the risk of leading to distortionary policy interventions.
  • References (96)
  • Citations (94)
📖 Papers frequently viewed together
13.7k Citations
1 Author (Frank H. Knight)
8,410 Citations
3,731 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
#1Jean Baptiste SayH-Index: 10
210 Citations
#1David Colander (Middlebury College)H-Index: 34
The paper considers the change in theoretical and empirical research in modern economics. This change is driven by the emergence of new theoretical approaches associated with the complexity theory and behavioral economics. The author shows that in future economists will reject some basic assumptions of neoclassical economics and adopt many different interdisciplinary approaches in order to study concrete economic problems. These gradual transformations should considerably change the structure of...
15 CitationsSource
#1Magnus Henrekson (Research Institute of Industrial Economics)H-Index: 36
This comment provides a critical evaluation of Blanchflower's (2004) survey of various aspects of self-employment and his overall normative conclusion that "more may not be better". In order to draw normative conclusions regarding the optimal level of self-employment a number of issues ignored by Blanchflower need to be addressed. First, self-employment may or may not be entrepreneurial. Second, it could be a second-best solution to institutional deficiencies at either the firm or the social lev...
2 Citations
#1Magnus Henrekson (HHS: Stockholm School of Economics)H-Index: 36
#2Nathan Rosenberg (Stanford University)H-Index: 48
The recent ‘scientification’ of commercial technology has brought the interface between universities and industry into sharp focus. In particular, academic entrepreneurship, i.e., the variety of ways in which academics take direct part in the commercialization of research, is widely discussed. The purpose of this paper is to suggest a framework for identifying the strategic individual decisions involved when educational choice is translated into science-based entrepreneurship. Identifying these ...
201 CitationsSource
#1Daron Acemoglu (MIT: Massachusetts Institute of Technology)H-Index: 103
#2Philippe Aghion (Harvard University)H-Index: 88
Last. Fabrizio ZilibottiH-Index: 33
view all 3 authors...
We analyze an economy where firms undertake both innovation and adoption of technologies from the world technology frontier. The selection of high-skill managers and firms is more important for innovation than for adoption. As the economy approaches the frontier, selection becomes more important. Countries at early stages of development pursue an investment-based strategy, which relies on existing firms and managers to maximize investment but sacrifices selection. Closer to the world technology ...
1,050 CitationsSource
#1Jesper Roine (HHS: Stockholm School of Economics)H-Index: 14
This paper considers redistributive as well as political consequences of tax avoidance. When tax avoidance is possible, the official tax rate does not necessarily correspond to what individuals actually pay. This affects both redistributive outcomes as well as political attitudes towards taxation. Depending on the avoidance technology different political equilibria emerge. When the avoidance possibilities are limited, the classical conflict between rich and poor is sustained. If the tax avoidanc...
42 CitationsSource
#1Robert M. Solow (MIT: Massachusetts Institute of Technology)H-Index: 63
pline began in September 1940 when I enrolled as a freshman in the elementary economics course at Harvard College. I will try in this essay to make sense of the evolution of economics over a span of more than 1⁄2fty years. An analogy that comes to mind is from The Boston Globe. The Sunday edition occasionally publishes pairs of photographs of urban landscapes. They are taken from the same spot, looking in the same direction, but are at least thirty, forty, or 1⁄2fty years apart. One shows a corn...
111 CitationsSource
#1Boyan Jovanovic (NYU: New York University)H-Index: 45
#2Peter L. Rousseau (Vandy: Vanderbilt University)H-Index: 27
Electricity and Information Technology (IT) are perhaps the two most important general purpose technologies (GPTs) to date. We analyze how the U.S. economy reacted to them. The Electricity and IT eras are similar, but also differ in several important ways. Electrification was more broadly adopted, whereas IT seems to be technologically more "revolutionary." The productivity slowdown is stronger in the IT era but the ongoing spread of IT and its continuing precipitous price decline are reasons fo...
551 CitationsSource
#1Zoltan J. AcsH-Index: 74
#2David B. AudretschH-Index: 96
406 CitationsSource
This paper explores the following hypotheses on the appropriate education for innovating entrepreneurship: a) breakthrough inventions are contributed disproportionately by independent inventors and entrepreneurs, while large firms focus on cumulative, incremental (and often invaluable) improvements; b) education for mastery of scientific knowledge and methods is enormously valuable for innovation and growth, but can impede heterodox thinking and imagination; c) large-firm RD d) while procedures ...
132 CitationsSource
Cited By94
#2Johan Karlsson (Örebro University)H-Index: 2
view all 3 authors...
Family businesses account for a substantial share of economic activity and deviate from standard economic assumptions on firm behavior. However, little is known about how these businesses are repre ...
#1Nicolai J. Foss (Bocconi University)H-Index: 5
#2Peter G. Klein (Baylor University)H-Index: 31
Last. Christian Bjørnskov (AU: Aarhus University)H-Index: 35
view all 3 authors...
4 CitationsSource
#1Luis Portales (University of Monterrey)H-Index: 4
Social entrepreneurship is the process by which social enterprises seek to address a social problem innovatively and sustainably changing the social and economic structures that gave rise to it. However, to achieve it is necessary to have an agent of change, aware of this problem and with the interest of carrying out an action that transforms the context or the conditions that make them arise or prevail. This agent of change is known as a social entrepreneur. The nature of entrepreneurship and m...
#1Simon C. Parker (UWO: University of Western Ontario)H-Index: 37
"This article discusses economic theories of entrepreneurship, drawing principally on work conducted in labour economics, microeconomics, macroeconomics, and financial economics. The article explains how incentives and constraints of various kinds affect occupational choices and entrepreneurial innovation, as well as how entrepreneurial decisions affect macroeconomic performance. Implications for public policy are drawn."
2 CitationsSource
#1Edgardo Bucciarelli (University of Chieti-Pescara)H-Index: 5
#2Nicola Mattoscio (University of Chieti-Pescara)H-Index: 3
Drawing inspiration from a renowned critique of standard economics moved by Simon (Q J Econ 69(1):99–118, 1955, Am Econ Rev 49(3):253–283, 1959), the authors of this paper develop a novel experimental design moving beyond the hypothesis-testing framework traditionally based on the use of deductive logic, while introducing a new way suitable for addressing the problem of understanding the impact of fluctuations and uncertainty in business decision-making. As claimed in the paper, this can be achi...
#1Marta Peris-Ortiz (Polytechnic University of Valencia)H-Index: 12
#2João Ferreira (UBI: University of Beira Interior)H-Index: 23
Last. Cristina I. Fernandes (IPN: Instituto Politécnico Nacional)H-Index: 12
view all 3 authors...
The objective of this study involves identifying the influence of Total Early-stage entrepreneurial activities (TEA) over the propensity to engage in innovative practices in OECD member states. The study correspondingly applies aggregate data at the national level based upon the statistics gathered by the Global Entrepreneurship Monitor (GEM), the Organisation for Economic Co-operation and Development (OECD) in conjunction with the Global Competitive Index (GCI) for the years between 2009 and 20...
3 CitationsSource
#1Julita Wasilczuk (GUT: Gdańsk University of Technology)H-Index: 4
The aim of this article is to present suggestions for future directions of research on entrepreneurship, with particular emphasis on different forms of entrepreneurship. The suggestions are preceded by a brief review of research on entrepreneurship. The article is theoretical in nature and does not present any own research, although its content is based on multiple years of experience in studying this phenomenon. The forms of entrepreneurship are discussed in terms of relationship with business,...
#1Magnus Henrekson (Research Institute of Industrial Economics)H-Index: 36
#2Mikael Stenkula (Research Institute of Industrial Economics)H-Index: 9
The surplus that is created in a successful entrepreneurial venture is much higher than the profit corresponding to the risk-adjusted market rate of return. The part of the surplus that exceeds this level may be enoted “entrepreneurial rent.” Such rents normally disappear in the long run but so-called isolating mechanisms ensure that these rents persist in the short or medium run. Entrepreneurial rents arise when successful entrepreneurship is exercised and entrepreneurial firms create and succe...
#1Christian Bjørnskov (AU: Aarhus University)H-Index: 35
#2Nicolai Juul Foss (Bocconi University)H-Index: 72
We review the literature that links institutions, entrepreneurship, and economic growth outcomes, focusing in particular on empirical research. Most of the literature has an economics orientation, but we also review relevant literature from other social sciences, including management research. The review helps identify a number of conceptual, theoretical, and empirical gaps, calling for further research. For example, the literature narrowly identifies entrepreneurship with start-ups and self-emp...
46 CitationsSource
#1David J. Teece (University of California, Berkeley)H-Index: 74
Mainstream economic theory has generally excluded consideration of the role of managers, which has, in turn, impaired its ability to explain resource allocation by, and heterogeneity among, firms. In the real world, managers are called on to fill entrepreneurial and leadership roles: sensing opportunities, developing and implementing viable business models, building capabilities, and guiding the organization through transformations. These entrepreneurial management tasks are part of the organiza...
61 CitationsSource