Entrepreneurship, innovation and technological change

This survey links the prevalent theory from the entrepreneurship literature concerning opportunity recognition and exploitation to economic theory, in particular the model of the knowledge production function. The debate and evidence regarding the relationship between innovative activity and organizational context is examined. The role that the external knowledge context or what has become known as knowledge spillovers and geographic location plays in innovative activity is analyzed. Based on new theoretical models combined with compelling empirical evidence, the authors offer a reinterpretation of the role of entrepreneurship in innovative activity and technology.