Entrepreneurship and Technology in Economic Development

Entrepreneurship and technology are key elements of innovation. Nevertheless, economists have long considered them as external to the economic system, although their consequences are fully recognized and emphasized in economic analysis. It is only in the recent past that some economists have begun to conceptualize and study the nature of innovation. In the 1950s and 1960s, attempts were made for the first time to measure statistically the contributions of increased capital and labor to growth. These studies showed that a substantial portion of growth was left unaccounted for by mere quantitative increases in the conventional inputs of capital and labor. And this “residual” was interpreted to represent a single variable, namely, technological progress…