How to Fill the Gap Between Knowledge and Innovation
Edited by Jean Bonnet, Domingo García Pérez De Lima and Howard Van Auken
Conclusion Jean Bonnet, Domingo García Pérez De Lema and Howard Van Auken Empirical studies suggest that the creation and survival of new firms are important for economic growth and employment (Carree and Thurik, 2003), productivity (Holtz-Eakin and Kao, 2003) and the reduction of social inequalities (Fairlie, 2004). Nevertheless the economic crisis of 2008 clearly demonstrates that entrepreneurial economies can be messy. Part of the explanation of the financial crisis is linked to the overdevelopment of the financial sector due partly to a lack of regulation (individual irresponsibility that leads to a collective risk of default). Also elites and talents have been diverted from more socially productive work by high wages in the financial sector according to Philippon and Reshef (2007). Ester Duflo (2008) notices accordingly that one of the good things to result from the crisis is a better allocation of talents. Indeed entrepreneurial firms can provide leadership during the current period of economic crisis. The economic crisis has led to lower consumer demand, employment and government tax revenue. Market benefits of an entrepreneurial economy are evident in the new technology that has been made available to consumers over the past 10-20 years. Entrepreneurial firms can provide the market with innovations that provide new products for the market and, in turn, generate new employment and tax revenue (Schramm, 2009). Starting up a firm is not only linked to the managerial skills, the wealth or a low aversion to risk an individual is endowed with, it is also linked...
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