The Microtheory of Innovative Entrepreneurship

by Baumol, William J.

• ISBN13: 9780691145846
• ISBN10: 0691145849
• eBook ISBN(s): 9781400835225
• Format: Hardcover
• Copyright: 2010-07-01
• Publisher: Princeton Univ Pr

Summary

Entrepreneurs are widely recognized for the vital contributions they make to economic growth and general welfare, yet until fairly recently entrepreneurship was not considered worthy of serious economic study. Today, progress has been made to integrate entrepreneurship into macroeconomics, but until now the entrepreneur has been almost completely excluded from microeconomics and standard theoretical models of the firm.The Microtheory of Innovative Entrepreneurshipprovides the framework for introducing entrepreneurship into mainstream microtheory and incorporating the activities of entrepreneurs, inventors, and managers into standard models of the firm.William Baumol distinguishes between the innovative entrepreneur, who comes up with new ideas and puts them into practice, and the replicative entrepreneur, which can be anyone who launches a new business venture, regardless of whether similar ventures already exist. Baumol puts forward a quasi-formal theoretical analysis of the innovative entrepreneur's influential role in economic life. In doing so, he opens the way to bringing innovative entrepreneurship into the accepted body of mainstream microeconomics, and offers valuable insights that can be used to design more effective policies.The Microtheory of Innovative Entrepreneurshiplays the foundation for a new kind of microtheory that reflects the innovative entrepreneur's importance to economic growth and prosperity.

Table of Contents

List of Figures and Tables	p. ix
Preface :The Innovative Entrepreneur in Dynamic Microtheory	p. xi
Introduction: Bringing Enterpreneurship and Innovation into the Theory of Value	p. 1
Entrepreneurship in Economic Theory: Reasons for Its Absence and Goals for Its Restoration	p. 9
Pricing, Remuneration, And Allocation of The Agents of Innovation
Toward Characterization of the Innovation Industry: The David-Goliath Symbiosis	p. 25
Entrepreneurship, Invention, and Pricing: Toward Static Microtheory	p. 36
Oligopolistic "Red Queen" Innovation Games, Mandatory Price Discrimination, and Markets in Innovation	p. 57
Welfare Theory: Technology Transfer, Imitation, And Creative Destruction
Optimal Innovation Spillovers: The Growth-Distribution Trade-off	p. 77
Enterprising Technology Dissemination: Toward Optimal Transfer Pricing and the Invaluable Contribution of "Mere Imitation"	p. 101
The Entrepreneur and the Beneficial Externalities of Creative Destruction	p. 128
Institutions, Payoffs, And The Entrepreneur's Choice of Activity: Historical Origins
Economic Warfare as a "Red Queen" Game: The Emergence of Productive Enterpreneurship	p. 139
On the Origins of Widespread Productive Enterpreneurship	p. 152
The Allocation of Entrepreneurship Does Matter	p. 165
Mega-enterprising Redesign of Governing Institutions: Keystone of Dynamic Microtheory	p. 172
Summing Up: Yes, the Theory of Entrepreneurship Is on Its Way	p. 188
Notes	p. 197
References	p. 225
Index	p. 237
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