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Education for Innovation: Entrepreneurial Breakthroughs vs. Corporate Incremental Improvements

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William J. Baumol

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Abstract

This paper explores the following hypotheses on the appropriate education for innovating entrepreneurship: a) breakthrough inventions are contributed disproportionately by independent inventors and entrepreneurs, while large firms focus on cumulative, incremental (and often invaluable) improvements; b) education for mastery of scientific knowledge and methods is enormously valuable for innovation and growth, but can impede heterodox thinking and imagination; c) large-firm R&D requires personnel who are highly educated in extant information and analytic methods, while successful independent entrepreneurs and inventors often lack such preparation; d) while procedures for teaching current knowledge and methods in science and engineering are effective, we know little about training for the critical task of breakthrough innovation.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10578.

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Date of creation: Jun 2004
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Handle: RePEc:nbr:nberwo:10578

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O0 - Economic Development, Technological Change, and Growth - - General

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  1. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September. [Downloadable!] (restricted)
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  1. Olmo Silva, 2006. "The Jack-of-All-Trades Entrepreneur: Innate Talent or Acquired Skill?," IZA Discussion Papers 2264, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Daniela Grieco, 2006. "Degree of innovativeness and market structure: A model," CESPRI Working Papers 178, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised May 2006. [Downloadable!]
  3. Sid Durbin, 2004. "Review of Workplace Skills, Technology Adoption and Firm Productivity: A Review," Treasury Working Paper Series 04/16, New Zealand Treasury. [Downloadable!]
  4. Bianchi, Milo & Henrekson, Magnus, 2005. "Is Neoclassical Economics still Entrepreneurless?," Working Paper Series in Economics and Finance 584, Stockholm School of Economics, revised 02 Feb 2005. [Downloadable!]
    Other versions:
  5. Mickey Folkeringa & Andre van Stel & Joris Meijaard, 2005. "Innovation, strategic renewal and its effect on small firm performance," Papers on Entrepreneurship, Growth and Public Policy 2005-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  6. Andrea GANZAROLI & Gianluca FISCATO & Luciano PILOTTI, 2006. "Does business succession enhance firms’ innovation capacity? Results from an exploratory analysis in Italian SMEs," Departemental Working Papers 2006-29, Department of Economics University of Milan Italy. [Downloadable!]
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