Entrepreneurship Research Zoltan J. Acs George Mason University Entrepreneurship in Russia: Main Trends in Entrepreneurial Research Graduate School of Business St. Petersburg State University

Mice—gazelles—elephants

The Gazelles

What do we study Handbook of Entrepreneurship Research –Edward Elgar, 2003 –Acs and Audretsch

Handbook of Entrepreneurship Introduction to entrepreneurship The entrepreneurial process Opportunity and the nature of exploitation The emergence of new ventures Financing new ventures The social context Entrepreneurship, growth and policy Future of capitalism

Demand & Supply Curves Demand curve Supply curve Quantity of the good (q) Price of the good (p) 0 p’ p q’ q p’ p q q’ E*

Knowledge as a Source of Entrepreneurial Opportunity History tFuture –Knowledge R&D Window of opportunity.

The Entrepreneurial Process Risk and Uncertainty Innovation and Technological Change Market Processes and Entrepreneurial Studies.

Innovation and Technological Change The knowledge spillover theory of entrepreneurship Innovation comes from industries with large firms but it is the small firms that do the radical innovation. Entrepreneurship is the conduit for knowledge spillovers.

Integrated circuit- Intel

Opportunity and the nature of Exploitation The Cognitive Psychology of Entrepreneurship The Individual-Opportunity Nexus

Entrepreneurship researchers ask: Wouldn’t it be great if we could look into the mind of the entrepreneur? If we could know what makes him or her tick? 12 Dr. Mellani Day - Neuroscience and Entrepreneurship PDW - AOM 2008 Anaheim

Entrepreneurship researchers ask: Wouldn’t it be great if we could look into the mind of the entrepreneur? If we could know what makes him or her tick? 13

Is entrepreneurial decision-making: rational versus gut-feeling or elements of both? What neural mechanisms are behind the Entrepreneur’s decision: Whom to trust? …hire? …pay? …financing? …investments? …product? …market? …strategy? …environment? …company culture? …legal? …systems? …infrastructure? …negotiations? … 14

Individual Opportunity Nexus Opportunity existed. Bill made a choice to quite a job. Economic freedom. Pe= f (profit *-wages)

The Emergence of New Ventures Firm organizing processes –Nascent entrepreneurs –Global Entrepreneurship Monitor New index Entrepreneurship, business and the firm Entrepreneurship and strategy

New GEM Index

Financing New Ventures Venture Capital and Private Equity Small Business and Debt Financing

Venture Capital and Private Equity Why do firms internationalize?  A fundamental question in strategy research agenda is “what determines the success or failure of firms in international competition.”  Large and growing literature detailing the internationalization activities of multinationals,conglomerates, small to medium-size firms, “bornglobals” and financial services  The internationalization of venture capital firms has remained a relatively understudied phenomenon

The Social Context The social psychology Entrepreneurship as social construction Entrepreneurship, networks and geographies –Location of firms Local Global

Entrepreneurship, Economic Growth and Public Policy The impact of entrepreneurship on economic growth The impact of entrepreneurship on development Entrepreneurship and public policy –Helping disadvantage firms –Helping disadvantages people

No such thing as Entrepreneurship Policy Only policy for an entrepreneurial economy –Individual –Economy –Region –Country –International

The Future of Capitalism –Financial crisis –Global recession –What way forward

Entrepreneurial Capitalism