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Entrepreneurship and Economic Growth$
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David B. Audretsch, Max C. Keilbach, and Erik E. Lehmann

Print publication date: 2006

Print ISBN-13: 9780195183511

Published to Oxford Scholarship Online: January 2007

DOI: 10.1093/acprof:oso/9780195183511.001.0001

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The Emergence of Entrepreneurship Policy

The Emergence of Entrepreneurship Policy

(p.161) 10 The Emergence of Entrepreneurship Policy
Entrepreneurship and Economic Growth

David B. Audretsch (Contributor Webpage)

Max C. Keilbach (Contributor Webpage)

Erik E. Lehmann (Contributor Webpage)

Oxford University Press

This chapter explains how and why public policy has turned to entrepreneurship as a mechanism for generating economic growth and employment. It reviews the public policy approach consistent with the capital-driven, or Solow economy. It then turns toward the knowledge-based, or Romer economy. It defines entrepreneurship policy and distinguishes it from SME policy. The mandate for entrepreneurship policy and the sources of market failure for entrepreneurship are identified, which provide an economic rationale for public policy intervention. The reasons why entrepreneurship policy is diffusing across many different national and regional contexts are explained. It is argued that entrepreneurship policy is a purposeful attempt to create an entrepreneurial economy.

Keywords:   economic growth, employment, economic policy, Solow economy, knowledge–based economy

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