Small Business Economics

, Volume 41, Issue 4, pp 757–774 | Cite as

The knowledge spillover theory of entrepreneurship

  • Zoltan J. Acs
  • David B. Audretsch
  • Erik E. Lehmann
Article
First Online:
Accepted:

Abstract

According to the knowledge spillover theory of entrepreneurship, the context in which decision-making is derived can influence one’s determination to become an entrepreneur. In particular, a context that is rich in knowledge generates entrepreneurial opportunities from those ideas. By commercializing ideas that evolved from an incumbent organization via the creation of a new firm, the entrepreneur (human capital) not only serves as a conduit for the spillover of knowledge, but also for the ensuing innovative activity and enhanced economic performance through resource allocation. The knowledge spillover theory of entrepreneurship brings together contemporary theories and thoughts of entrepreneurship with prevailing theories of economic growth, geography, and strategy and therefore explains not just why some people choose to become an entrepreneur, but also why this matters significantly for the economy and society.

Keywords

Knowledge Knowledge spillovers Absorptive capacity Uncertainty Competition Endogenous growth 

JEL Classifications

J24 L26 M13 O3 
This is a preview of subscription content, log in to check access.

References

  1. Acs, Z. J. (2010). High impact entrepreneurship. In Z. J. Acs, & D. B. Audretsch (Eds.), Handbook of Acs, Z. J. and entrepreneurship (2nd Ed.) (pp. 165–182). New York: Springer.Google Scholar
  2. Acs, Z. J., & Armington, C. (2004). Employment growth and entrepreneurial activities in cities. Regional Studies, 38, 911–927.CrossRefGoogle Scholar
  3. Acs, Z. J., & Audretsch, D. B. (1988). Innovation in large and small firms: An empirical analysis. The American Economic Review, 78(4), 678–690.Google Scholar
  4. Acs, Z. J., & Audretsch, D. B. (1990). Innovation and small firms. Cambridge, MA: MIT Press.CrossRefGoogle Scholar
  5. Acs, Z. J., & Audretsch, D. B. (2010). Handbook of entrepreneurship (2nd ed.). New York: Springer.CrossRefGoogle Scholar
  6. Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlsson, B. (2004). The missing link: The knowledge filter and endogenous growth (discussion paper). Stockholm: Center for Business and Policy Studies.Google Scholar
  7. Acs, Z. J., Audretsch, D. B., Braunerhjelm, P., & Carlsson, B. (2012). Growth and entrepreneurship. Small Business Economics, 39(2), 213–245.CrossRefGoogle Scholar
  8. Acs, Z. J., Audretsch, D. B., & Feldman, M. (1994). R&D spillovers and recipient firm size. Review of Economics and Statistics, 76, 336–340.CrossRefGoogle Scholar
  9. Acs, Z. J., Audretsch, D. B., Pontus, B., & Carlsson, B. (2009). The knowledge spillover theory of entrepreneurship. Small Business Economics, 32(1), 15–30.CrossRefGoogle Scholar
  10. Acs, Z. J., & Plummer, L. (2005). Penetrating the “knowledge filter” in regional economies. The Annals of Regional Science, 39(3), 439–456.Google Scholar
  11. Acs, Z. J, & Sanders, M. (2013). Knowledge spillover entrepreneurship in an endogenous growth model. Small Business Economics. doi: 10.1007/s11187-013-9506-8.
  12. Acs, Z. J., & Varga, A. (2005). Entrepreneurship, agglomeration and technological change. Small Business Economics, 24(3), 323–334.CrossRefGoogle Scholar
  13. Agarwal, R., Audretsch, D. B., & Sarkar, M. B. (2007). The process of creative construction: Knowledge spillovers, entrepreneurship and economic growth. Strategic Entrepreneurship Journal, 2, 263–286.CrossRefGoogle Scholar
  14. Aghion, P., & Howitt, P. (1992). A model of growth and creative destruction. Econometrica, 60, 323–351.CrossRefGoogle Scholar
  15. Alvarez, S., Barney, J., & Young, S. (2010). Debates in entrepreneurship: opportunity formation and implications for the field of entrepreneurship. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship (pp. 23–46). New York: Springer.CrossRefGoogle Scholar
  16. Anselin, L., Varga, A., & Acs, Z. J. (1997). Local geographic spillovers between university research and high technology innovations. Journal of Urban Economics, 42(3), 422–448.CrossRefGoogle Scholar
  17. Arenius, P., & De Clercq, D. (2005). A network-based approach on opportunity recognition. Small Business Economics, 24, 249–265.CrossRefGoogle Scholar
  18. Arentz, J., Sautet, F., & Storr, V. (2012). Prior-knowledge and opportunity identification. Small Business Economics, 41, 461–478.CrossRefGoogle Scholar
  19. Arrow, K. (1962). Economic welfare and the allocation of resources for invention. In R. R. Nelson (Ed.), The rate and direction of inventive activity (pp. 609–626). Princeton: Princeton University Press.Google Scholar
  20. Audretsch, D. (1995). Innovation and industry evolution. Cambridge: MIT Press.Google Scholar
  21. Audretsch, D. B., & Belitski, M. (2013). The missing pillar: The creativity theory of knowledge spillover entrepreneurship. Small Business Economics. doi: 10.1007/s11187-013-9508-6.
  22. Audretsch, D. B., & Feldman, M. (1996). R&D spillovers and the geography of innovation and production. American Economic Review, 86, 630–640.Google Scholar
  23. Audretsch, D., & Fritsch, M. (2002). Growth regimes over time and space. Regional Studies, 36, 113–124.CrossRefGoogle Scholar
  24. Audretsch, D. B., Hülsbeck, M., & Lehmann, E. E. (2012). Regional competitiveness, university spillovers, and entrepreneurial activity. Small Business Economics, 39(3), 587–601.CrossRefGoogle Scholar
  25. Audretsch, D. B., & Keilbach, M. (2004). Entrepreneurship capital and economic performance. Regional Studies, 38(8), 949–959.CrossRefGoogle Scholar
  26. Audretsch, D. B., & Keilbach, M. (2007). The theory of knowledge spillover entrepreneurship. Journal of Management Studies, 44, 1242–1254.CrossRefGoogle Scholar
  27. Audretsch, D. B., Keilbach, M., & Lehmann, E. E. (2006). Entrepreneurship and economic growth. Oxford: Oxford University Press.CrossRefGoogle Scholar
  28. Audretsch, D. B., & Lehmann, E. E. (2005a). Does the knowledge spillover theory of entrepreneurship hold for regions? Research Policy, 34, 1191–1202.CrossRefGoogle Scholar
  29. Audretsch, D. B., & Lehmann, E. E. (2005b). Mansfield ’s missing link: The impact of knowledge spillovers on firm growth. Journal of Technology Transfer, 30(1/2), 207–210.Google Scholar
  30. Audretsch, D. B., Lehmann, E. E., & Plummer, L. A. (2009). Agency and governance in strategic entrepreneurship. Entrepreneurship Theory and Practice, 33(1), 149–166.CrossRefGoogle Scholar
  31. Audretsch, D. B., Lehmann, E. E., & Warning, S. (2004). University spillovers: Does the kind of science matter? Industry and Innovation, 11(3), 193–205.CrossRefGoogle Scholar
  32. Audretsch, D. B., Lehmann, E. E., & Warning, S. (2005). University spillovers and new firm location. Research Policy, 34(7), 1113–1122.CrossRefGoogle Scholar
  33. Audretsch, D. B., & Stephan, P. (1996). Company-scientist locational links: The case of biotechnology. The American Economic Review, 86(3), 641–652.Google Scholar
  34. Audretsch, D. B., & Stephan, P. (1999). How and why does knowledge spill over in biotechnology? In D. B. Audretsch & R. Thurik (Eds.), Innovation, industry evolution, and employment (pp. 216–229). Cambridge: Cambridge University Press.Google Scholar
  35. Bonaccorsi, A., Colombo M. G., Guerrini, M., & Rossi-Lamastra, C. (2013). University specialization and new firm creation across industries. Small Business Economics. doi: 10.1007/s11187-013-9509-5.
  36. Braunerhjelm, P. (2008). Entrepreneurship, knowledge, and growth. Foundations and Trends in Entrepreneurship, 4, 451–533.CrossRefGoogle Scholar
  37. Braunerhjelm, P., Acs, Z. J., Audretsch, D. B., & Carlsson, B. (2010). The missing link: Knowledge diffusion and entrepreneurship in endogenous growth. Small Business Economics, 34(2), 105–125.CrossRefGoogle Scholar
  38. Buenstorf, G. (2007). Opportunity spin-offs and necessity spin-offs. Papers on economics and evolution, 2007-18, Max Planck Institute of Economics, Evolutionary Economics Group.Google Scholar
  39. Carlsson, B., & Friedh, A.-C. (2002). Technology transfer in United States universities. Journal of Evolutionary Economics, 12(1–2), 199–232.CrossRefGoogle Scholar
  40. Casson, M. (2005a). The individual-opportunity nexus. Small Business Economics, 24(5), 423–430.CrossRefGoogle Scholar
  41. Casson, M. (2005b). Entrepreneurship and the theory of the firm. Journal of Economic Behaviour and Organization, 58, 327–348.CrossRefGoogle Scholar
  42. Casson, M., & Wadeson, N. (2007a). The discovery of opportunities: Extending the economic theory of the entrepreneur. Small Business Economics, 28(4), 285–300.CrossRefGoogle Scholar
  43. Casson, M., & Wadeson, N. (2007b). Entrepreneurship and macroeconomic performance. Strategic Entrepreneurship Journal, 1(3–4), 239–262.CrossRefGoogle Scholar
  44. Chandler, A. (1977). The visible hand: The managerial revolution in American business. Cambridge: Belknap Press.Google Scholar
  45. Cohen, W., & Levinthal, D. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35, 128–152.CrossRefGoogle Scholar
  46. Companys, Y., & McMullen, J. (2007). Strategic entrepreneurs at work: The nature, discovery, and exploitation of entrepreneurial opportunities. Small Business Economics, 28(4), 301–322.CrossRefGoogle Scholar
  47. Domar, E. (1946). Capital expansion, Rate of growth, and employment. Econometrica, 14(2), 137–147.CrossRefGoogle Scholar
  48. Feldman, M. P. (1999). The new economics of innovation, spillovers and agglomeration: A review of empirical studies. Economics of Innovation and New Technology, 8(1), 5–25.CrossRefGoogle Scholar
  49. Feldman, M. P., & Audretsch, D. B. (1999). Innovation in cities: Science-based diversity, specialization and localized competition. European Economic Review, 43, 409–429.CrossRefGoogle Scholar
  50. Fiet, J. O. (2002). The systematic search for entrepreneurial discoveries. Westport, CT: Greenwood Publishers.Google Scholar
  51. Fritsch, M., & Amoucke, R. (2013). Regional public research, higher education, and innovative start-ups: An empirical investigation. Small Business Economics. doi: 10.1007/s11187-013-9510-z.
  52. Gaglio, C., & Katz, J. (2001). The psychological basis of opportunity identification: Entrepreneurial alertness. Small Business Economics, 16, 95–111.CrossRefGoogle Scholar
  53. Griliches, Z. (1979). Issues in assessing the contribution of research and development to productivity growth. Bell Journal of Economics, 10, 92–116.CrossRefGoogle Scholar
  54. Griliches, Z. (1990). Patent statistics as economic indicators: A survey. Journal of Economic Literature, 28, 1661–1707.Google Scholar
  55. Hall, B., Link, A., & Scott, J. (2003). Universities as research partners. Review of Economics and Statistics, 85, 485–491.CrossRefGoogle Scholar
  56. Harrod, R. (1939). An essay in dynamic theory. The Economic Journal, 49(193), 14–33.CrossRefGoogle Scholar
  57. Haynie, M., Shepherd, D., & McMullen, J. (2009). An opportunity for me? The role of resources in opportunity evaluation decisions. Journal of Management Studies, 46(3), 337–361.CrossRefGoogle Scholar
  58. Hayter, C. (2013). Conceptualizing knowledge-based entrepreneurship networks: Perspectives from the literature. Small Business Economics. doi: 10.1007/s11187-013-9512-x.
  59. Henderson, R., Jaffe, A., & Trajtenberg, M. (1998). Universities as a source of commercial technology: A detailed analysis of university patenting 1965–1988. Review of Economics and Statistics, 65, 119–127.CrossRefGoogle Scholar
  60. Hülsbeck, M., Lehmann, E. E., & Starnecker, A. (2013). Performance of technology transfer offices in Germany. Journal of Technology Transfer, 38, 199–215.CrossRefGoogle Scholar
  61. Jacobs, J. (1969). The economy of cities. NY: Random House.Google Scholar
  62. Jaffe, A. B. (1986). Technological opportunity and spillovers of R&D: Evidence from firms’ patents profits, and market value. American Economic Review, 76(5), 984–1001.Google Scholar
  63. Jaffe, A. B. (1989). The real effects of academic research. American Economic Review, 79, 957–970.Google Scholar
  64. Kirzner, I. M. (1979). Perception, opportunity, and profit. Chicago, IL: University of Chicago Press.Google Scholar
  65. Kirzner, I. M. (1997). Entrepreneurial discovery and the competitive market process: An Austrian approach. Journal of Economic Literature, 35(1), 60–85.Google Scholar
  66. Klarl, T. (2013). Comment on Acs and Varga: Entrepreneurship, agglomeration and technological change. Small Business Economics, 41, 215–218.CrossRefGoogle Scholar
  67. Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and replication of technology. Organizational Science, 3, 383–397.CrossRefGoogle Scholar
  68. Kortum, J., & Lerner, S. (1997). Stronger protection or technological revolution: What is behind the recent surge in patenting? NBER working papers 6204. Cambridge, MA: National Bureau of Economic Research.Google Scholar
  69. Krueger, N. (2003). The cognitive psychology of entrepreneurship. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship research (pp. 105–140). Dordrecht: Kluwer Academic Publishers.Google Scholar
  70. Leyden, D. P., & Link, A. N. (2013). Knowledge spillovers, collective entrepreneurship, & economic growth: The role of universities. Small Business Economics. doi: 10.1007/s11187-013-9507-7.
  71. Link, A. N., & Welsh, D. H. B. (2013). From laboratory to market: On the propensity of young inventors to form a new business. Small Business Economics, 40(1), 1–7.Google Scholar
  72. Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3–39.CrossRefGoogle Scholar
  73. Lucas, R. (1993). Making a miracle. Econometrica, 61, 251–272.CrossRefGoogle Scholar
  74. Mansfield, E., John, R., Anthony, R., Edmond, V., Samuel, W., & Frank, H. (1977a). The production and application of new industrial technology. New York, NY: W.W. Norton & Company Inc.Google Scholar
  75. Mansfield, E., John, R., Anthony, R., Samuel, W., & George, B. (1977b). Social and private rates of return from industrial innovations. Quarterly Journal of Economics, 91(2), 221–240.CrossRefGoogle Scholar
  76. McCann, B. T., & Folta, T. B. (2008). Location matters: Where we have been and where we might go in agglomeration research. Journal of Management, 34, 532–565.CrossRefGoogle Scholar
  77. McMullen, J. S., Plummer, L., & Acs, Z. (2007). What is an entrepreneurial opportunity? Small Business Economics, 28(4), 273–283.CrossRefGoogle Scholar
  78. McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21, 603–609.CrossRefGoogle Scholar
  79. Michelacchi, C. (2003). Low returns in R&D due to the lack of entrepreneurial skills. The Economic Journal, 113, 207–225.CrossRefGoogle Scholar
  80. Mueller, P. (2006). Exploring the knowledge filter: How entrepreneurship and university–industry relationships drive economic growth. Research Policy, 35(10), 1499–1508.CrossRefGoogle Scholar
  81. Nelson, R. (1981). Research on productivity growth and differences: Dead ends and new departures. Journal of Economic Literature, 19, 1029–1064.Google Scholar
  82. Parker, S. C. (2009). The economics of entrepreneurship. Oxford: Cambridge University Press.CrossRefGoogle Scholar
  83. Plummer, L. A., & Acs, Z. J. (2012). Localized competition in the knowledge spillover theory of entrepreneurship. Journal of Business Venturing (2012). doi: 10.1016/j.jbusvent.2012.10.003.
  84. Qian, H., & Acs, Z. J. (2013). An absorptive capacity of knowledge spillover entrepreneurship. Small Business Economics, 40(2), 185–199.CrossRefGoogle Scholar
  85. Reynolds, P. D., Storey, D. J., & Westhead, P. (1994). Cross-national comparisons of the variation in new firm formation rates. Regional Studies, 28(4), 443–456.CrossRefGoogle Scholar
  86. Robson, P., Akuetteh, C., Westhead, P., & Wright, M. (2012). Innovative opportunity pursuit, human capital and business ownership experience in an emerging region: Evidence from Ghana. Small Business Economics, 39(3), 603–625.CrossRefGoogle Scholar
  87. Romer, P. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002–1037.CrossRefGoogle Scholar
  88. Romer, P. (1990). Endogenous technological change. Journal of Political Economy, 98, 71–102.CrossRefGoogle Scholar
  89. Samuelsson, M., & Davidsson, P. (2009). Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures. Small Business Economics, 33(2), 229.CrossRefGoogle Scholar
  90. Sarasvathy, S., Dew, N., Velamuri, R., & Venkataraman, S. (2003). Three views of entrepreneurial opportunity. In Z. Acs & D. Audretsch (Eds.), The international handbook of entrepreneurship (pp. 141–160). Dordrecht: Kluwer.Google Scholar
  91. Schumpeter, J. A. (1934). The theory of economic development. Cambridge, MA: Harvard University Press.Google Scholar
  92. Shane, S. (2001a). Technological opportunities and new firm creation. Management Science, 47, 205–220.CrossRefGoogle Scholar
  93. Shane, S. (2001b). Technology regimes and new firm formation. Management Science, 47, 1173–1190.CrossRefGoogle Scholar
  94. Shane, S. (2003). A general theory of entrepreneurship: The individual opportunity nexus. MA: Edward Elgar Publishing Inc.CrossRefGoogle Scholar
  95. Shane S., & Eckhardt J. (2003). The individual-opportunity nexus. In Z. Acs, & D. Audretsch (Eds.), Handbook of entrepreneurship research (p. 187). Dordrecht: Kluwer Academic Publishers.Google Scholar
  96. Solow, R. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70, 65–94.CrossRefGoogle Scholar
  97. Stam, E. (2013). Knowledge and entrepreneurial employees: A country-level analysis. Small Business Economics. doi: 10.1007/s11187-013-9511-y.
  98. Ucbasaran, D., Westhead, P., & Wright, M. (2008). Opportunity identification and pursuit: Does an entrepreneur’s human capital matter? Small Business Economics, 30, 153–173.CrossRefGoogle Scholar
  99. Varga, A. (2000). Local academic knowledge transfers and the concentration of economic activity. Journal of Regional Science, 40, 289–309.CrossRefGoogle Scholar
  100. Zucker, L., Darby, M., & Armstrong, J. (1998). Intellectual human capital and the birth of U.S. biotechnology enterprises. American Economic Review, 88, 290–306.Google Scholar

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Zoltan J. Acs
    • 1
  • David B. Audretsch
    • 2
  • Erik E. Lehmann
    • 3
  1. 1.George Mason UniversityFairfaxUSA
  2. 2.Indiana UniversityBloomingtonUSA
  3. 3.Faculty of Business Administration and Economics, GBM & CCSEAugsburg UniversityAugsburgGermany

Personalised recommendations