Chapter 2: A Model of Technological Entrepreneurship
Igor Prodan Introduction According to Schumpeter (1976), the function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on. Since the end of the 1980s, the development of the knowledge-based economy, globalization and international competitive pressure has increased the importance of innovation in local economies (Camagni, 1995; Feldman, 1994; Malmberg, 1997; Porter, 1990; Ritsila, 1999; Storper, 1995) and also the importance of entrepreneurship, especially technological entrepreneurship, as one of the most important factors for regional development. The importance of technological entrepreneurship as a factor in the creation of both individual and regional wealth has recently generated considerable interest (Venkataraman, 2004). The reason why some regions are more advanced than others lies in successful fostering of technological entrepreneurship of advanced regions. Schumpeter was the ﬁrst (Schumpeter, 1976; Venkataraman, 2004) to clearly posit the centrality of the entrepreneur to economic progress. For Schumpeter, the entrepreneur is essential to the progress of capitalism because he creates change. And capitalism, according to Schumpeter, is distinguished by a striving for disruption, rather than stability, as innovations are introduced that reshape the existing structure of industry. Not only is ‘the perennial gale of creative destruction’ more typical than continuity in a capitalist economy, but disruption is also,...
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