Entrepreneurship Capital and Economic Performance

Audretsch D. B. and Keilbach M. (2004) Entrepreneurship capital and economic performance, Regional Studies38, 949-959. The neoclassical model of the production function, as applied by Solow when building the neoclassical model of growth, linked labour and capital to output. More recently, Romer and others have expanded the model to include measures of knowledge capital. This paper introduces a new factor, entrepreneurship capital, and links it to output in the context of a production function model. It explains what is meant by entrepreneurship capital and why it should influence economic output. A production function model including several different measures of entrepreneurship capital is then estimated for…