Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/19983 
Year of Publication: 
2004
Series/Report no.: 
Papers on Entrepreneurship, Growth and Public Policy No. 3804
Publisher: 
Max Planck Institute for Research into Economic Systems, Jena
Abstract: 
New knowledge in the form of products, processes and organizations leads to opportunities that can be exploited commercially. However, converting new ideas into economic growth requires turning new knowledge into economic knowledge that constitutes a commercial opportunity. Acs, Audretsch, Braunerhjelm, and Carlsson (2003) develop a model that introduces a "knowledge filter" between new knowledge and economic knowledge and identifies both new ventures and incumbent firms as the mechanism that reduces the knowledge filter and increases regional growth. This paper tests the hypotheses that new venture creation is a better mechanism than the absorptive capacity of incumbent firms for converting new knowledge into economic knowledge. Our results support the contention that new venture creation is a superior method of penetrating the regional "knowledge filer" than incumbent firms.
Subjects: 
Regional growth
knowledge
new venture creation
entrepreneurship
JEL: 
M13
L10
O30
O18
O10
Document Type: 
Working Paper

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