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No 165:
Endogenous growth through knowledge spillovers in entrepreneurship: An empirical test

Frédéric Delmar (), Karl Wennberg () and Karin Hellerstedt ()

Abstract: Endogenous growth theory is based on the notion that technological knowledge stimulates growth, yet the micro foundations of this process are rarely investigated and remain obscure. Knowledge spillover theory posits that growth is contingent on the technology dependence of industries, forming the landscape for technology entrepreneurs to launch and grow new ventures. We investigate these theoretical contingencies of endogenous growth with two research questions at two levels of analysis: First, do industries with a greater need for new technology-based entrepreneurship grow disproportionately faster than other industries? Second, do the knowledge spillover effects foster the growth of new technology based firms contingent on certain industry structures? These questions are examined empirically, using a comprehensive employee-employer data set on the science and technology labor force in Sweden from 1995 to 2002.

Keywords: Endogenous Growth; Entrepreneurship; Industry Evolution; (follow links to similar papers)

JEL-Codes: D24; L11; L26; M13; (follow links to similar papers)

48 pages, April 12, 2011

Forthcoming in Strategic Entrepreneurship Journal

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