The Microtheory of Innovative Entrepreneurship

The Microtheory of Innovative EntrepreneurshipThe Microtheory of Innovative Entrepreneurship / Baumol, William J.
Princeton: Princeton University Press, 2010. 246 p.

Entrepreneurs can be “replicative” or “innovative.” A replicative entrepreneur is one who organizes a new business firm. An “innovative entrepreneur” is one who finds new ideas and puts them to use. The innovative entrepreneur is not covered in basic economic textbooks. The development of theory has been impeded by the heterogeneity of the product and the view that activities of entrepreneurs are very risky and beset with discontinuities. Baumol seeks to overcome these impediments.
"Even as innovative entrepreneurship has emerged as the goal for policymakers around the globe, economists have struggled to find its proper place in microtheory. No more. In this pathbreaking new book, William Baumol provides the blueprint for understanding the crucial role of entrepreneurship and its contribution to innovation and ultimately economic growth. This lively and thoughtful book highlights the distinct role entrepreneurs play in the economy and reveals why the entrepreneur can no longer remain the invisible man in economic theory."