Discuss the Relationship Between Entrepreneurship Innovation and Economic Development
University of Nottingham Ningbo China
Business School
Academic Year 2012/13 Autumn Semester
Entrepreneurship and Business
Maris FARQUHARSON
Discuss the relationship between entrepreneurship, innovation and economic development
CEHN Xiyu
Student ID: 6508658
Word Count:1949
COPY 1
According to the statistic presented by European commission (2011), in 2008 over 60% of enterprises were innovative in Germany, Luxembourg. The following EU-27 average innovative percentage was 51.6%. And the lowest propensities to innovative were also reach 24.3% by Latvia, 27.9% by Poland and 28.9% by Hungary. Huge proportion of entrepreneurship and large profit from it can be seen by the statistic (Eurostat, 2011), this consequence leads universities; take Oxford as an example, to start to encourage enterprise. What the entrepreneurship is and why they can occupy such a large quantity in the market. In this essay, the synergy between entrepreneurship and innovation and reflection of the result of this synergy on economic development will be discussed. 1. Definition: Entrepreneurship
In the last 250 years, economist defined entrepreneurs in different ways. Richard Cantillon (1755) defined entrepreneur as an adventure with uncertainty. In Cantillon’s view, entrepreneur refers to individuals who obtain profit from uncertain transaction with an expectation of buying in a lower price. Following definition on entrepreneurship carried out by Jean Baptiste Say (1963) puts emphasis on the diversity of roles that entrepreneurs must accept successfully if they are to make profit beyond simple transaction of merely processing and paying for all inputs and selling with a higher price of outputs. However, in 1934 the understanding of entrepreneurship delivered by Schumpeter is fully considering the previous missing elements of difference, uniqueness, innovation and change, (Lumsdaine, E. and Binks, M., 2007), which was proved with a practical evidence by the
Business School
Academic Year 2012/13 Autumn Semester
Entrepreneurship and Business
Maris FARQUHARSON
Discuss the relationship between entrepreneurship, innovation and economic development
CEHN Xiyu
Student ID: 6508658
Word Count:1949
COPY 1
According to the statistic presented by European commission (2011), in 2008 over 60% of enterprises were innovative in Germany, Luxembourg. The following EU-27 average innovative percentage was 51.6%. And the lowest propensities to innovative were also reach 24.3% by Latvia, 27.9% by Poland and 28.9% by Hungary. Huge proportion of entrepreneurship and large profit from it can be seen by the statistic (Eurostat, 2011), this consequence leads universities; take Oxford as an example, to start to encourage enterprise. What the entrepreneurship is and why they can occupy such a large quantity in the market. In this essay, the synergy between entrepreneurship and innovation and reflection of the result of this synergy on economic development will be discussed. 1. Definition: Entrepreneurship
In the last 250 years, economist defined entrepreneurs in different ways. Richard Cantillon (1755) defined entrepreneur as an adventure with uncertainty. In Cantillon’s view, entrepreneur refers to individuals who obtain profit from uncertain transaction with an expectation of buying in a lower price. Following definition on entrepreneurship carried out by Jean Baptiste Say (1963) puts emphasis on the diversity of roles that entrepreneurs must accept successfully if they are to make profit beyond simple transaction of merely processing and paying for all inputs and selling with a higher price of outputs. However, in 1934 the understanding of entrepreneurship delivered by Schumpeter is fully considering the previous missing elements of difference, uniqueness, innovation and change, (Lumsdaine, E. and Binks, M., 2007), which was proved with a practical evidence by the
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