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Entrepreneurship and innovation: public policy frameworks

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The purpose of this paper is to identify and unravel the disparate views toward innovation prevalent within the economic community and to link them to the various public policy approaches. These various schools of thought, or ways of thinking about the economy in general and the role of entrepreneurship and innovation in particular, not only shape how innovation and entrepreneurial activity are valued, but also the overall policy debate concerning innovation and entrepreneurship. Unraveling of these views highlights the disparate way in which entrepreneurial activity leading to innovation is valued.

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  1. The focus of this paper is on the former, although we address the latter in Audretsch and Link (2012).

  2. This paper draws on Atkinson and Audretsch (2010).

  3. Quoted from Scherer (1992), p. 1417.

  4. In fact, Schumpeter himself backed down from making any specific predictions about the inevitable demise of capitalism and emergence of socialism. In his presidential address at the annual meeting of the American Economic Association, Schumpeter (1950, p. 447) cautioned, “I do not ‘prophesy’ or predict it… (F)actors external to the chosen range of observation may intervene to prevent… consummation.” (Quoted from Scherer 1992).

  5. For a careful analysis of Schumpeter’s prediction that capitalism could not survive, see Scherer (1992).

  6. Quoted from Business Week, Bonus Issue (1993, p. 12).


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Correspondence to David B. Audretsch.

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Audretsch, D.B., Link, A.N. Entrepreneurship and innovation: public policy frameworks. J Technol Transf 37, 1–17 (2012).

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