Presentation by Mark Sanders for G-Forum in Jena, Germany
Download
1 / 14

Entrepreneurship and Economic Development ; Evidence and Explanations - PowerPoint PPT Presentation


  • 77 Views
  • Uploaded on

Presentation by Mark Sanders for G-Forum in Jena, Germany Thursday, November 10th, 2005. Entrepreneurship and Economic Development ; Evidence and Explanations. Mark Sanders [email protected] and Andre van Stel. Presentation by Mark Sanders for G-Forum in Jena, Germany

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Entrepreneurship and Economic Development ; Evidence and Explanations' - heather-mendoza


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Entrepreneurship and Economic Development;

Evidence and Explanations

Mark Sanders

[email protected]

and

Andre van Stel


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Introduction

Setting the Stage

Outlines of the Model

Predictions and Testing

Conclusions


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Setting the Stage

From empirical evidence…

-Kuznets, Schultz, Yamada

-Carlsson, Loveman and Sengenberger, Acs et. al.

-Carree et. al.

…to stylized facts

-A U-shaped relationship between GDP and

entrepreneurship exists in cross-section and

time series data.

-Countries do not experience the through at the same

point in time or level of GDP.


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Setting the Stage

Business ownership rate

GDP per Capita


E

0.20

ITA

0.15

CAN

JAP

Equilibrium

0.10

FRA

US

UK

GER

0.05

0.00

YCAP

9,000

14,000

19,000

24,000

Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Setting the Stage


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Setting the Stage


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Outlines of the Model

Stage 1:

- Entrepreneurial R&D

- Discovery of new products

- High skill intensity and skilled wages

- Low (measured) economic growth

Stage 2:

- Firm based R&D

- Improvement on existing products

- Low skill intensity and skilled wages

- High (measured) economic growth


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Outlines of the Model

Set-Up:

- standard LOV-preferences

- monopolistic competition

- rent-seeking drives R&D

- 2 types of R&D compete for R&D resources

- type 1 (entrepreneurial R&D) discovers products

- type 2 (firm R&D) develops existing products

- all products face life cycle

- arbitrage solves R&D allocation in Steady State


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Predictions and Testing

Predictions:

introduction of GPT causes:

- shift from firm to entrepreneurial R&D

- acceleration in product discovery

- higher demand for skilled labour

- productivity slowdown

- measured slowdown in economic growth

- increase in measured entrepreneurial activity

- higher start-up and exit rates


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Predictions and Testing

Predictions:

aging of GPT causes:

- shift from entrepreneurial to firm R&D

- acceleration in product improvements

- higher demand for unskilled labour

- productivity acceleration

- measured acceleration in economic growth

- decrease in measured entrepreneurial activity

- lower start-up and exit rates


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Predictions and Testing

Predictions:

as GPT’s enter occasionally the observed U-shapes

is just part of a wave that characterizes the

adjustment to technological breakthroughs. Such

waves originate in the technological leader but

spread with the new general purpose technology.


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Predictions and Testing

Preliminary Tests:

The model predicts accurately if:

- U-shape in GDP-entrepreneurship is universal

- technology leader “leads”

- follower countries follow as GPT spreads

- U-shape is shorter and more shallow in followers

- Start-up and exit rates are both high in early

stage and low towards the end

- Relative wages increase early on and decrease

afterwards


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Predictions and Testing

Data Analysis Results:

Patterns in Entrepreneurship confirm ICT was a GPT

The US led that GPT

Most of the OECD followed

Notable exceptions are France, Luxembourg, Norway

and Japan

Data are flawed, analysis preliminary

Results are nonetheless promising


Presentation by Mark Sanders for G-Forum in Jena, Germany

Thursday, November 10th, 2005

Conclusions

Alternating Innovation regimes may explain:

relative wage fluctuations

productivity slowdown and accelerations

dynamics in entrepreneurial activity

the link between entrepreneurship and growth

With our Model and Analysis:

we contribute to modeling such alternating regimes

we take some first steps in testing the predictions

we explain some puzzling stylized facts

we underline the role of entrepreneurs in growth


ad