Exploring the knowledge filter: how entrepreneurship and university-industry relations drive economic growth

Knowledge is recognized as a crucial element of economic growth in addition to physical capital and labor. Knowledge can be transformed into products and processes and is, in this way, exploited commercially. The ability to produce, identify, and exploit knowledge depends on the existing knowledge stock and the absorptive capacity of actors such as employees at firms and researchers at universities and research institutions. The existing knowledge stock might not be commercialized to its full extent; therefore, knowledge flows must occur and transmission channels are needed. The paper tests the hypotheses that entrepreneurship and university-industry relations are vehicles for knowledge flows and, thus, spur economic growth. --Regional growth,regional development,Knowledge,Entrepreneurship,university-industry relations

Exploring the Knowledge Filter - How Entrepreneurship and University-Industry Relations Drive Economic Growth

Why do regions post different growth rates and differences in technological progress? Knowledge creation and knowledge spillovers are an important element in stimulating economic development. Recent empirical studies have shown that knowledge spillovers positively affect technological change and economic growth. Other studies have shown that knowledge spillovers do not occur automatically, hence, it is less clear which mechanisms facilitate and foster knowledge flows. This paper focuses on the exploitation of opportunities and commercialization of knowledge, namely the transformation of knowledge into products, processes and organizations, and their contribution to regional economic growth. The degree of knowledge exploitation may differ across regions because the level of research and development activities varies, incumbent firms might not exploit new opportunities to the full extent, and new knowledge generated in research institutions and universities is hardly translated into new products or services . It may be argued that a knowledge filter exists limiting the total conversion of knowledge into new products, processes and organizations (for details, see Acs, Audretsch, Braunerhjelm & Carlsson, 2003). This paper introduces entrepreneurship and university-industry relations as mechanisms for knowledge spillovers and determinants of economic growth. Entrepreneurial activity can be assumed as a mechanism by which knowledge spillover occurs. Many radical innovations have been introduced by new firms rather than by incumbents, because the set-up of one’s own business might be the most promising possibility to commercialize knowledge (Audretsch, 1995). University-industry relations may be another mechanism facilitating the exploitation of knowledge and the flow of ideas (Mansfield, 1991, 1998). If the generated knowledge at universities is transferred via research partnerships it may accelerate technology transfer and enable firms to develop new products and process (Cohen, Nelsen & Walsh, 2002, Mansfield 1991 and 1998). The empirical modeling framework develops a regional model of economic growth and analyzes if the region’s absorptive capacity, entrepreneurship and university-industry relations drive economic growth. The results of the empirical analysis suggest that new ventures and partnerships between university and industry amplify the permeability of the knowledge filter and thus spur economic growth. The paper also gives an outlook and discusses implications for public policy to stimulate entrepreneurship and university-industry relations.

Entrepreneurship in the region: Breeding ground for nascent enterpreneurs?

This paper employs data from the German Socioeconomic Panel (GSOEP) and data from the German Social Insurance Statistics to study nascent entrepreneurship. In particular, micro data from the GSOEP characterizing employees and nascent entrepreneurs is combined with regional characteristics. Firstly, considering only the micro data the estimates imply that the potential drivers of nascent entrepreneurs are entrepreneurial experience, entrepreneurial learning, and parental self-employment. Secondly, accounting for regional characteristics, which measure the regional level of young and small firms or start-up activity, strongly indicate that regions with strong tradition in entrepreneurship are a breeding ground for nascent entrepreneurs. --Entrepreneurship,self-employment,young and small firms,GSOEP

Exploiting entrepreneurial opportunities: the impact of entrepreneurship on economic growth

Knowledge is recognized as an important ingredient for economic growth in addition to physical capital and labor. While transforming knowledge into products and processes it is exploited commercially. Nevertheless, the existing knowledge stock and the absorptive capacity of actors like employees at firms and researchers at universities and research institutions are conditional for the ability to produce, identify, and exploit knowledge. Since incumbent firms do not exploit new knowledge to the full extent, realized entrepreneurial opportunities may arise. This paper tests the hypothesis whether or not entrepreneurship is an important vehicle for knowledge flows and economic growth. The empirical results indicate that an increase in innovative start-up activity is more effective than an increase in general entrepreneurship for economic growth. --Regional growth,knowledge,entrepreneurship

Regional growth regimes revisited - the case of West Germany

Audretsch and Fritsch (2002) proposed two explanations for the mixed evidence regarding the relationship between new firm formation and regional development. Firstly, they found evidence for the existence of long time lags needed before the main effects of new firm formation on employment change become evident. Secondly, they suggested that regions may be characterized by different growth regimes in which new firms and entrepreneurship assume different roles and accordingly lead to different effects. This paper reports the results of re-estimating the main relationships investigated by Audretsch and Fritsch (2002) in a somewhat different way. One main difference is that we now have information on a longer time-period available and have chosen shorter time intervals for the analysis. This enabled us to investigate the transition between different types of growth regimes in further detail. Furthermore, our analysis is not on the level of planning regions but on the level of districts ("Kreise") and we have explicitly accounted for spatial autocorrelation in the analysis, which turns out to be highly relevant. -- Audretsch und Fritsch (2002) haben zwei Erklärungen für die unklare empirische Evidenz hinsichtlich des Einflusses von Gründungen auf die Regionalentwicklung vorgeschlagen. Erstens fanden sie Hinweise darauf, dass wesentliche Effekte der Gründungen auf die Arbeitsplatzentwicklung erst mit großer Zeitverzögerung wirksam werden. Und zweitens vermuten sie, dass Regionen durch unterschiedliche Wachstumsregime gekennzeichnet sind in denen Gründungen und Entrepreneurship unterschiedliche Rollen spielen und sie entsprechend unterschiedliche Wirkungen entfalten. Dieser Aufsatz berichtet von erneuten empirischen Analysen der von Audretsch und Fritsch (2002) untersuchten Beziehungen. Ein wesentlicher Unterschied besteht darin, dass Daten über einen längeren Zeitraum zur Verfügung stehen. Gleichzeitig wird eine Einteilung in kürzere Zeitintervalle gewählt, so dass sich die Übergänge zwischen verschiedenen Typen von Wachstumsregimen eingehender untersuchen lassen. Weiterhin führen wir die Analyse auf der Ebene von Kreisen und nicht für Raumordnungsregionen durch. Und wir kontrollieren explizit für räumliche Autokorrelation, die sich in den Schätzungen als recht bedeutsam erweist.Regional growth,new firms,entrepreneurship,growth regimes,time lags.,Regionalentwicklung,Unternehmensgründungen,Entrepreneurship,Wachstumsregime,Time Lags.

The Persistence of Regional New Business Formation-Activity over Time – Assessing the Potential of Policy Promotion Programs

We investigate regional differences in the level and the development of regional new business formation activity. There is pronounced variance of start-up rates across regions. The level of regional new firm formation activity is rather path-dependent so that changes are relatively small. The main factors determining the level of regional start-up activity are innovation and entrepreneurship. In addition unemployment seems to play a role. These factors also appear to be responsible for changes in the level of regional new business formation activity and could be an appropriate starting point for policy measures trying to promote start-ups. Our empirical evidence strongly suggests that such measures may have significant effect only in the long run.

The persistence of regional new business formation-activity over time: assessing the potential of policy promotion programs

We investigate regional differences in the level and the development of regional new business formation activity. There is a pronounced variance of start-up rates across the regions. The level of regional new firm formation is rather pathdependent so that changes are relatively small. The main factors determining the level of regional start-ups are innovation and entrepreneurship. These factors also seem to be responsible for changes in the level of regional new business formation. In addition, unemployment plays a role. Steering innovation and creating an entrepreneurial atmosphere could be an appropriate starting point for policy measures that try to promote start-ups. Our empirical evidence strongly suggests that such measures may have significant effect only in the long run. -- Wir analysieren regionale Unterschiede des Niveaus von Gründungsaktivitäten und dessen Entwicklung. Die regionalen Gründungsraten weisen eine ausgeprägte Streuung auf. Dabei ist eine deutliche Pfadabhängigkeit der Gründungsaktivitäten feststellbar, so dass Änderungen relativ gering ausfallen. Die wesentlichen Bestimmungsgründe für das Niveau der Gründungsaktivitäten sind Innovation und Unternehmertum. Diese Faktoren spielen auch für Veränderungen der regionalen Gründungsaktivitäten eine Rolle. Zusätzlich hat hier auch das Niveau der regionalen Arbeitslosigkeit einen Einfluss. Die Stimulierung von Innovationsaktivitäten und von Entrepreneurship stellen geeignete Ansatzpunkte für eine Politik dar, die auf eine Steigerung der Gründungsaktivitäten abzielt. Unser empirischer Befund weist allerdings darauf hin, dass ein wesentlicher Effekt solcher Maßnahmen erst längerfristig erwartet werden kann.New businesses,entrepreneurship,growth regimes,time lags,Regionalentwicklung,Unternehmensgründungen,Entrepreneurship,Wachstumsregime,Time Lags

Direct and indirect effects of new business formation on regional employment

We investigate the impact of new business formation on regional employment. The main effects occur after a considerable time lag. Obviously, a large part of the effect is not due to job creation by the newcomers but rather is of indirect nature. This implies that a large part of the debate about job creation by new businesses so far has been misleading. -- Wir analysieren den Einfluss von Gründungen auf die regionale Beschäftigung. Die wesentlichen Effekte treten erst mit erheblicher zeitlicher Verzögerung auf. Offensichtlich ist ein großer Teil der Wirkungen nicht auf die Beschäftigungsentwicklung der Newcomer zurück zu führen, sondern mehr indirekter Natur. Dies impliziert, dass ein wesentlicher Teil der bisherigen Debatte über die Beschäftigungswirkungen von Neugründungen von falschen Voraussetzungen ausgeht.Regional growth,new businesses,entrepreneurship,time lags,start-up cohorts,Regionalentwicklung,Unternehmensgründungen,Entrepreneurship,Time Lags,Gründungskohorten

The effects of new firm formation on regional development over time: The case of Great Britain

This paper re-examines the link between new firm formation and subsequent employment growth. It investigates whether it is possible to have the 'wrong type of entrepreneurship'�defined as new firm formation which leads to zero or even negative subsequent employment growth. It uses a very similar approach to that of Fritsch and Mueller (2004), confirming their findings that the employment impact of new firm formation is in three discrete phases. Then, using data for Great Britain, the paper shows the employment impact of new firm formation is significantly positive in England, but zero in Scotland where formation rates are much lower. It also shows that, in the low enterprise counties of GB, new firm formation has a negative effect on employment, implying that we find that the 'wrong type of entrepreneurship' is possible.

Lifers: A study of at -risk adolescent readers

In this study I put a face and voice to the at-risk adolescent reader. No strangers to failure, these are students who by and large have struggled with reading their entire educational lives but who for whatever reason have been unable to escape the cycle of frustration in which they find themselves caught. These are students who have a great deal to say but who until now have had no forum in which to say it. These are students who deserve to be heard. For my primary source of data, I utilized Seidman\u27s phenomenological approach to interviewing, conducting a series of in-depth interviews with twenty-two at-risk ninth grade readers over the course of a semester. Concurrent with my interviews I enhanced my context and understanding of these adolescents by observing and interacting with them as they took part in their daily high school routine. Then too, I examined their permanent school records, using this descriptive data to augment the students\u27 words and actions. All twenty-two of these adolescents can be seen as lifers, students who have done battle with reading from the very start of their academic careers. Contrary to what we as teachers may want to believe, they have been doomed to failure not by their family histories but rather by educational practices which have been unsuccessful at understanding and meeting their individual needs. In their struggles to become readers, these students have somehow lost the very point of reading as words have taken precedence over meaning. And in losing the point of reading, they have lost not only the desire to read but also the ability and opportunity to keep up with their peers. It is clear that if we want to eradicate the category of lifers from our schools, we need to revisit and rethink the way we approach readers and reading instruction from the very first day of kindergarten. Learning to read is a complicated process, but we educators must do our fair share to give each and every child the opportunity to achieve success as a reader and student