The Relationship Between Entrepreneurship, Innovation and Economic Development
Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion.
Date of submission: 26 November 2010
Name: Chen Wanxin
School: the University of Nottingham, Ningbo, China
Module convenor’s name: Maris Farquharson
Module title: Entrepreneurship and Business
Module code: P11440 (2010)
Length: 1885 words
Entrepreneurship, which was a notion put forward approximately three centuries ago and soon becomes a contentious topic, contributes positively to economic development mainly through innovation. Whilst creativity and problem solving are required at all points in this relationship, for the reasons that creativity is the origin of innovation and effective problem solving is an indispensable skill required at every link in this process. The essay will firstly give definitions to the notion “entrepreneurship” relating to some theories and then throw light upon the term “innovation”. The third part will clarify how entrepreneurship contributes positively to economic development through innovation. After that, moreover, the essay will figure out the link between creativity and innovation as well as the role problem solving play in this whole relationship.
Entrepreneurship, mainly based on four historical theories, has become increasingly thorough all the way from the early 1700s to the 21st century. The first use of the term entrepreneurship on record was by Richard Cantillon (168?-1734) in his book Essai Sur La Nature de Commerce en General. In Cantillon’s theory, the notion entrepreneur refers to those individuals who buy staffs at a low price and expect to sell them at a higher price under the condition of uncertainty (Lumsdaine and Binks, 2007). While after that, the economist well known as a populariser of Adams Smith’ work, Jean Baptiste Say (1767-1832), attributed Britain’s industrial
Date of submission: 26 November 2010
Name: Chen Wanxin
School: the University of Nottingham, Ningbo, China
Module convenor’s name: Maris Farquharson
Module title: Entrepreneurship and Business
Module code: P11440 (2010)
Length: 1885 words
Entrepreneurship, which was a notion put forward approximately three centuries ago and soon becomes a contentious topic, contributes positively to economic development mainly through innovation. Whilst creativity and problem solving are required at all points in this relationship, for the reasons that creativity is the origin of innovation and effective problem solving is an indispensable skill required at every link in this process. The essay will firstly give definitions to the notion “entrepreneurship” relating to some theories and then throw light upon the term “innovation”. The third part will clarify how entrepreneurship contributes positively to economic development through innovation. After that, moreover, the essay will figure out the link between creativity and innovation as well as the role problem solving play in this whole relationship.
Entrepreneurship, mainly based on four historical theories, has become increasingly thorough all the way from the early 1700s to the 21st century. The first use of the term entrepreneurship on record was by Richard Cantillon (168?-1734) in his book Essai Sur La Nature de Commerce en General. In Cantillon’s theory, the notion entrepreneur refers to those individuals who buy staffs at a low price and expect to sell them at a higher price under the condition of uncertainty (Lumsdaine and Binks, 2007). While after that, the economist well known as a populariser of Adams Smith’ work, Jean Baptiste Say (1767-1832), attributed Britain’s industrial
References: Andriopoulos, C. and Dawson, P. (2009) Managing Change, Creativity and Innovation by SAGE Publications Ltd. Bessant, J. and Tidd, J. (2007) Innovation and Entrepreneurship by Chichester: John Wiley Danneels, E. (2004) The Journal of Product Innovation Management by Product Development and Management Association Hisrich, R. D., Peters, M. P. and Sherpherd, D. S. (2010) Entrepreneurship by McGraw-Hill International Edition Johnson, P. (2007) The Economics of Small Firms Simultaneous published in the USA and Canada, by Routledge Kirkham, P., Mosey, S. and Binks, M. (2009) Ingenuity in Practice: A Guide for Clear Thinking by the University of Nottingham Institute for Enterprise and Innovation Lumsdaine, E. and Binks, M. (2007) Entrepreneurship: from Creativity to Innovation by Trafford Publishing, Offices in Canada, USA, Ireland and UK McDaniel, B. A. (2002) Entrepreneurship and Innovation: An Economic Approach by M. E. Sharpe, Armonk, New York and London, England [On line] Available at: Ebrary<http://site.ebrary.com/lib/unnc/docDetail.action?docID=10178085> [10 November 2010] Schumpeter, J. A. (1934) The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle First published as a Galaxy Book, 1961, New York: Oxford University Press