Austrian Perspectives on Economic Organization
Edited by Nicolai J. Foss and Peter G. Klein
Chapter 5: Schumpeter’s and Kirzner’s Entrepreneur Reconsidered: Corporate Entrepreneurship, Subjectivism and the Need for a Theory of the Firm
CHAPTER 5 4/7/02 1:56 PM Page 1 5. Schumpeter’s and Kirzner’s entrepreneur reconsidered: corporate entrepreneurship, subjectivism and the need for a theory of the firm Wolfgang Gick CURRENT CONSIDERATIONS AND EMPIRICAL FINDINGS Entrepreneurship is not a new term, but one that is often used. Current discussions link the entrepreneur to small firms, and small entrepreneurial firms count for a high percentage of an industry’s employment. Entrepreneurship stands for combating unemployment and poverty and has recently led governments to set up a new series of policy measures for entrepreneurship promotion.1 The interest in entrepreneurship as a purely empirical phenomenon started in the 1970s and has meanwhile led to a series of empirical studies delivering new insights on firm growth, employment, firm entry, market structure and innovative activity. Put briefly, in most of the empirical studies entrepreneurship is either treated as a firm-specific factor or an aspect of the firm founder. Acs and Audretsch (1986 and 1990) refuse the ‘Schumpeter hypothesis’ that economies of scale in innovation lead to large-scale R&D activities. Small firms generate more innovations per employee than large ones, but innovation activity is also promoted by large firms and in markets with imperfect competition. These results can be found in earlier works like Kamien and Schwartz (1975) and Scherer (1984). In any case, one should be cautious about concluding that small firms are the main source of innovation. The size variable used in these studies provides a test of large firms versus small firms but not necessarily...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.