The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • William J. Baumol
  • Melissa A. Schilling
Reference work entry


This article describes the recent expansion of research on entrepreneurship, innovation and growth. Although the entrepreneur is widely credited with critical contributions to innovation and growth, the subject of entrepreneurship has virtually disappeared from mainstream theory and standard textbooks. Reasons explaining this gap are indicated. In addition to some brief materials on earlier writings, the rich body of recent work on the subject, both theoretical and empirical, is surveyed, illustrating the wide variety of subjects explored and the insights offered by the new literature.


Baumol, W. Cantillon, R. economic growth entrepreneurship equilibrium innovation Kirzner, I. Knight, F. Marshall, A. Mill, J.S. Neoclassical theory Opportunity costs Patents Product development Property rights Risk Say, J.-B. Schumpeter, J. Self-employment Social status Transfer of technology Uncertainty premium Venture capital 

JEL Classifications

L2 O12 O31 O33 
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • William J. Baumol
    • 1
  • Melissa A. Schilling
    • 1
  1. 1.