Journal of Evolutionary Economics

, Volume 23, Issue 4, pp 735–766 | Cite as

Entrepreneurship, structural change, and economic growth

Regular Article

Abstract

The ability to adjust to structural change is vital to economic development, and entries can be active participants in this process. While the importance of factor reallocations for growth is widely discussed, the role of entrepreneurs in managing these reallocations is currently not well understood. This paper analyzes the role of entry activity for adjustments of the sectoral structure and its relevance for regional economic development. The historical framework is the accelerated economic transformation that occurred in industrialized countries during the mid 1970s, resulting in an increasing need to adjust. Based on German data from 1975 to 2002, evidence is presented that sectoral reallocations are an important means for transforming entrepreneurial activity into growth.

Keywords

Entrepreneurship New business formation Regional development Structural change 

JEL Classification

L26 M13 O1 O18 R11 

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Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  1. 1.Faculty of Economics and BusinessUniversity of GroningenGroningenNetherlands

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