TY - JOUR
AU - Brouwer, Maria
AB - Schumpeter stressed innovation and Knight uncertainty as preconditions for entrepreneurship and productivity growth. Schumpeter emphasized entry in his early work but came to consider incumbent innovation the dominant mode in his later work. Modern growth theory emphasizes dissemination of knowledge to explain progress in the steady state. The paper analyzes the effects of entry, market structures and uncertainty on the incidence and diffusion of innovation. The insertion of Knightian uncertainty in Schumpeter's model can explain why innovators are numerous and arrive unexpectedly. Uncertainty spurs diffusion and improves the utilization of human capital. Combining the ideas of Schumpeter and Knight also elucidates several stylized facts of entrepreneurship, such as small entry size; low chances of survival and high growth rates.
TI - Entrepreneurship and Uncertainty: Innovation and Competition among the Many
JF - Small Business Economics
DO - 10.1023/A:1008147829791
DA - 2004-10-08
UR - https://www.deepdyve.com/lp/springer-journals/entrepreneurship-and-uncertainty-innovation-and-competition-among-the-MCr0E9Rf0N
SP - 149
EP - 160
VL - 15
IS - 2
DP - DeepDyve
ER -