Entrepreneurship, the New Economy and Public Policy

1. Front Matter

   Pages I-VI

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2. Editorial

   • Robert F. Lanzillotti, Elias Dinopoulos, Uwe Cantner

   Pages 1-3

3. Reflections on the Schumpeter I knew well

   • Paul A. Samuelson

   Pages 5-9

4. Schumpeter, product innovation and public policy: the case of cigarettes

   • Robert F. Lanzillotti

   Pages 11-32

5. Risk, variety and volatility: growth, innovation and stock prices in early industry evolution

   • Mariana Mazzucato

   Pages 33-54

6. Social networks and industrial geography

   • Olav Sorenson

   Pages 55-69

7. Growing Silicon Valley on a landscape: an agent-based approach to high-tech industrial clusters

   • Junfu Zhang

   Pages 71-90

8. The theory of the firm and the markets for strategic acquisitions

   • Gunnar Eliasson, Åsa Eliasson

   Pages 91-115

9. The growth of commercialization — facilitating organizations and practices: A Schumpeterian perspective

   • Sten Thore, Robert Ronstadt

   Pages 117-136

10. On the macroeconomic effects of establishing tradability in weak property rights

    • Gunnar Eliasson, Clas Wihlborg

    Pages 137-162

11. Capital in the new economy: A Schumpeterian perspective

    • Jim Stewart

    Pages 163-179

12. A comparative perspective on innovation and productivity in manufacturing and services

    • Hans Lööf

    Pages 181-202

13. Tracing empirical trails of Schumpeterian development

    • Michael Peneder

    Pages 203-221

14. Towards an evolutionary interpretation of aggregate labor market regularities

    • Giorgio Fagiolo, Giovanni Dosi, Roberto Gabriele

    Pages 223-252

15. An evolutionary model of international competition and growth

    • Carolina Castaldi

    Pages 253-266

16. Innovation and growth in Germany over the past 150 years

    • Hariolf Grupp, Icíar Dominguez Lacasa, Monika Friedrich-Nishio, Andre Jungmittag

    Pages 267-287

17. Nonlinear dynamism of innovation and business cycles

    • Masaaki Hirooka

    Pages 289-316

18. The dynamic effects of general purpose technologies on Schumpeterian growth

    • Iordanis Petsas

    Pages 317-345

Silicon Valley is the most salient example of high-tech industrial clusters. Public policymakersthroughouttheworldwouldliketolearnthesecretsofSiliconValley in order to build their own high-tech economies. The existing literature on ind- trial clusters, which traces back to Marshall (1920), focuses on the way in which ?rms bene?t from locating in a cluster; it suggests that once a cluster comes into existence, it tends to reinforce itself by attracting more ?rms. However, a more important question is how to reach this critical mass in the ?rst place. In contrast to the literature, evidence suggests that entrepreneurs rarely move when they est- lish high-tech start-ups (Cooper and Folta, 2000). This contradicts the notion that location choice analyses lead entrepreneurs to a high-tech cluster. A high-tech industrial cluster such as Silicon Valley is characterized by c- centratedentrepreneurship. FollowingSchumpeter,weemphasizethefactthat“the appearance of one or a few entrepreneurs facilitates the appearance of others” (Schumpeter,1934). Weproposeanagent-basedcomputationalmodeltoshowhow high-tech industrial clusters could emerge in a landscape in which no ?rms existed originally. The model is essentially a spatial version of the Nelson-Winter model: Boundedly rational agents are scattered over an explicitly de?ned landscape. Each agent is endowed with some technology, which determines his ?rm’s productivity (if he has one). During each period of time, an agent with no ?rm would make a decision as to whether he wants to start one. This decision is mostly affected by the behavior of his social contacts, who are all his neighbors.

• Entrepreneurship
• Evolutionary
• New Economy
• Public Policy
• Schumpeter
• Schumpeterian economics
• agents
• productivity

• Faculty of Economics and Business Administration Chair for Microeconomics, Friedrich-Schiller-University of Jena, Jena, Germany

  Uwe Cantner

• Department of Economics, University of Florida, Gainesville, USA

  Elias Dinopoulos

• Graduate School of Business, University of Florida, Gainesville, USA

  Robert F. Lanzillotti

Policies and ethics