In order to have full access of this Article, please email us on thedocumentco@hotmail.co.uk
Introduction:
Entrepreneurship Innovation and Economic Development, The 21st century has brought with itself different concepts in the economic area. Entrepreneurship, innovation and economic development are three of those concepts that have had an impact on technological innovation. Entrepreneurs are the drivers of innovation and development as they not only are the risk bearers but their initiatives are what lead a business to strive and thrive.
They are individuals that are valued by society because they not only help in creating new opportunities but in creating employment as well as growth opportunities for the society as a whole.
Entrepreneurship is widely considered to be the skill of being an entrepreneur- an individual who innovates, bears risk and is his own boss. Generally, entrepreneurship refers to starting up your own business based on personal skills and abilities. Innovation is another concept that fits in well with the idea of economic development. It means thinking out of the box and developing and arriving at something different. This difference can be in the form of a new and unique idea as well as a unique selling point for the customers.
Economic development, as considered by experts and economists is the increase in the standard of living of the individuals and includes the quantitative as well as the qualitative changes in the economy. Such development can be in the form of investment in infrastructure, human capital or technological development that leads the economy to road of success.
Relationship between entrepreneurship, innovation and economic development
Relationship between Entrepreneurship and Innovation:
Entrepreneurship and innovation are closely knit because entrepreneurs are the drivers of innovation. Their creative and out of the box thinking is what brings change and new ideas to the market place. Such ideas then contribute to the overall productivity. Innovation not only brings with it a change but that change is something leading to benefit for all.
For example, IKEA is considered to be an innovation and breakthrough. It’s unique selling point is offering self assembled furniture facility. This makes customized availability of furniture possible for the consumer. More so, furniture according to individual customer’s preferences can be tailor made. Thus, this was a kind of innovation that was undertaken.
Rabiei (1388) have shown the link between entrepreneurship and innovation on the Iranian economic growth by making use of the Romer Endogenous Growth Model. By considering labor, human capital and other resources as the variables, they drew conclusions that intermediate goods, instance machinery, physical and human capital all contribute towards increase in production in the Iranian economy.
Another economist views named Schumpeterian considers the entrepreneurs to be the hero of capitalism. Schumpeter (1934) claims that entrepreneurship and innovation are very closely knitted together and do not carry much of a difference. According to him, entrepreneurs create new products and new combinations of markets and materials that ultimately lead to innovation and contribute to economic development.
It’s claimed that entrepreneurs innovate and think out of the box. They, thus give birth to inventions that increase the rate of the technological growth, lead to change and transform the structure of the economy. Qualities in an entrepreneur like creativity, dynamism and enthusiasm is what makes them perform to the best for the economic development.
Relationship between Innovation & Economic Development:
Innovation acts as a driver for economic development. Researchers have witnessed that technological innovation is closely knitted to economic development. Such results are widely apparent at the industry level along with the firm level. Solow, a neo-classist economist has mentioned in his theory that development is closely associated with the increase in input resources like capital and labour.
Cobb-Douglas in his theory provides the link between innovation…
Recent Comments