The knowledge spillover theory of entrepreneurship

Abstract

Contemporary theories of entrepreneurship generally focus on the recognition of opportunities and the decision to exploit them.While the prevailing view in the entrepreneurship literature is that opportunities are exogenous, the most prevalent theory of economic growth suggests that opportunities are endogenous.This paper bridges the gap between the entrepreneurship and economic growth literatures by developing a knowledge spillover theory of entrepreneurship.Knowledge created endogenously results in knowledge spillovers that give rise to opportunities to be identified and exploited by entrepreneurs.

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