Resource title

Entrepreneurship Capital and Economic Performance

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Resource description

The neoclassical model of the production function, as applied by Robert Solow to build the neoclassical model of growth, linked labor and capital to output. More recently, Romer and others have expanded the model to include measures of knowledge capital. In this paper we introduce a new factor, entrepreneurship capital, and link it to output in the context of a production function model. This paper explains what is meant by entrepre-neurship capital and why it should influence economic output. A production function model including several different measures of entrepreneurship capital is then estimated for German regions. The results indicate that entrepreneurship capital is a significant and important factor shaping output and productivity. These results sug-gest a new direction for policy that focuses on instruments to enhance entrepreneurship capital.

Resource author

David B. Audretsch, Max Keilbach

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24359

Resource license

Adapt according to the presented license agreement and reference the original author.