What we do know and what we need to know about knowledge in the growth process

Abstract

Purpose – There is evidence for major positive effects of knowledge transfer and innovation diffusion on economic growth. Much research has addressed schooling, training, and other aspects of human capital accumulation, but less emphasis has been placed on the interaction between firms and other organizations as a key driver of the development of new knowledge and its economic use. There is an extensive body of literature that discusses various aspects of knowledge transfer and innovation diffusion between firms, and this literature may serve as a microfoundation for understanding the role of knowledge in the growth process. However, we need to understand the role of the entrepreneur as a missing link between knowledge and innovation. The purpose of this paper is to outline some foundations of endogenous (externally driven) growth models, and uses the knowledge spillover theory of entrepreneurship to propose a new model of latent and emergent entrepreneurship. Design/methodology/approach – The paper uses the method of conceptual analysis to structure the literature and its assumptions. The authors review in broad terms what we know in the space of knowledge and growth, and what we still need to know. The authors curate informed views on the topic of knowledge and the way that entrepreneurs contribute to innovation diffusion. Findings – The paper develops a new perspective on knowledge. Starting from the role of knowledge as a core element in the microfoundations of endogenous growth models, it uses the knowledge spillover theory of entrepreneurship to propose a new model of latent and emergent entrepreneurship. Practical implications – The paper uses knowledge spillover theory to lay out a more complete and more realistic process through which knowledge gets converted into realized innovations, and as such, it makes the intervention points through which people management can facilitate organizational effectiveness through innovation more transparent. Originality/value – The paper provides guidance for future researchers on knowledge and innovation diffusion. It encourages innovation in our thinking about the role of knowledge, and allows scholars to combine perspectives more flexibly both across levels of analysis (macro and micro), and across disciplines (economy and management).

From latent to emergent entrepreneurship: the knowledge spillover construction circle

“…This study contributes to creative construction literature (Schumpeter, 1934) and knowledge spillover of strategic entrepreneurship literature (Agarwal et al 2007(Agarwal et al , 2010 by demonstrating the process how entrepreneurship emerges (Audretsch and Keilbach, 2007) from its latent form to emergent and market innovation (Caiazza et al, 2016b). In recognizing several forms of entrepreneurship, this study contributes to strategic entrepreneurship literature by offering a four-step process theoretical framework where latent and emergent entrepreneurship activity is important as an economic agent able to exercises judgment under uncertainty for pursuing opportunities to start a new firm , Caiazza, 2014.…”

“…According to such definitions a deliberate form of entrepreneurship is fully implemented when the realized entrepreneurship is equal to intended entrepreneurship. In this case, a focal firm realizes a research activity aimed to create new knowledge in order to develop a new firm that commercializes this innovation (Caiazza et al, 2016b). When intentions are realized exactly as intended this process of deliberate entrepreneurship leads to a spin-off of a new firm from the focal one (Shane and Venkataraman, 2000).…”

From latent to emergent entrepreneurship: The role of human capital in entrepreneurial founding teams and the effect of external knowledge spillovers for technology adoption

“…Accordingly, Caiazza et al (2020) developed a theoretical model suggesting that entrepreneurs with an appropriate set of skills and abilities can identify opportunities that hinge on existing technologies found in other firms and manage to exploit them for commercial gain. These technologies can then be further diffused to other organizations assuming entrepreneurs or top managers of those organizations can overcome the knowledge barriers that can constrain their adoption (Caiazza et al, 2016;. Thus, they will be able to recognize an opportunity from relevant knowledge spillovers if they possess the appropriate prior set of skills to assimilate the external knowledge effectively (Caiazza et al, 2015;Dew, 2009;Shane, 2000).…”

“…One of the main reasons behind firms not being able to exploit a technology even if it is developed internally, relates to the perception of risk and level of uncertainty (Agarwal et al, 2010; that entrepreneurs (or managers) have regarding its success and the potential benefits that their firms can draw from its commercialization. These traits are in turn linked to the type and level of skills and related abilities that entrepreneurs or managers possess (Caiazza et al, 2016;, which is the focus of this study.…”

“…Most latent and emerging entrepreneurship studies focus on the potential commercialization of product or service innovation. However, Caiazza et al (2016) emphasized that the Oslo Manual (2005) includes process, marketing, and organizational innovations in its definition of innovation 1 (Kim and Lui, 2015;Tavassoli and Karlsson, 2015). Opportunity identification literature (Dew, 2009;Shane, 2000) further emphasizes that innovations also relate to new ways of sourcing materials and organizing methods that allow outputs to be sold at more than their cost of production (Casson, 2005;Shane, 2000).…”