@techreport{Audretsch2007Globalization,
abstract = {This paper argues that globalization has led to a shift in developed countries from an industrial to an entrepreneurial model of production. Globalization is interpreted as a level shock in the supply of unskilled labor to the world economy, a decrease in the level of political risk associated with outward foreign direct investment (offshoring), and the widespread diffusion of a general purpose technology such as ICT. The im-pact of these exogenous shocks is then analyzed in a variety expansion model that distinguishes among three types of varieties. Following the life cycle we distinguish among new, mature and offshore production. The above shocks all result in a shift in comparative advantage in developed countries towards new varieties which corres-pond to the early stage of the product life cycle. Moreover, because entrepreneurs serve as agents that move varieties between life cycle stages, their importance in-creases due to globalization. The many new opportunities for profit benefit entrepre-neurs and skilled labor. By contrast, factors of production employed in the mature stages of the life cycle become less important. Thus, the model explains the emer-gence of what we label an entrepreneurial economy.},
address = {Jena},
author = {David B. Audretsch and Mark Sanders},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F01; J31; O1; P0; Globalisierung; Innovationswettbewerb; Produktlebenszyklus; Komparativer Kostenvorteil; Unternehmer; Industriestaaten},
language = {eng},
number = {2007,003},
publisher = {Universit\"{a}t Jena und Max-Planck-Institut f\"{u}r \"{O}konomik},
title = {Globalization and the rise of the entrepreneurial economy},
type = {Jena economic research papers},
url = {http://hdl.handle.net/10419/25578},
year = {2007}
}
