Entrepreneurship, Innovation and Startups

In the past decades, we have made significant advances in understanding the relationship between entrepreneurship, growth, and knowledge. In the same way, deeper insights were gained into how knowledge, entrepreneurship and innovation are related. There is no comprehensive understanding of the interaction of these variables, which include knowledge, innovation and entrepreneurship. It is not possible to fully grasp these intersecting and complex forces if we do not have a model that relates the origins of micro- and macroeconomic growth. This paper’s main goal is to illuminate recent progress in our understanding the forces behind the creation of new knowledge, the diffusion of that knowledge and its commercialization via innovation and the role played by the entrepreneur during the growth process. This survey concludes with the policy implications of new research findings. The design of regulations affecting knowledge production, ownership and entry barriers are important. Also, the impact on labor mobility, financial markets (inefficient), and labour mobility is also significant. All of them have implications for efficient knowledge diffusion through entry. Incentives that encourage knowledge creation must be coupled with mechanisms for converting it into useful and societal needs.