The conventional view of science-based businesses focuses on the inseparability of the roles of the inventor generating the underlying idea and the Schumpeterian entrepreneur who implements it in practice. We present an equilibrium model of science-based entrepreneurship where scientific ideas...

We present a model of science-based entrepreneurship where ideas initially produced by researchers with high-level knowledge capital may be developed by high-ability entrepreneurs. With moderate investment costs, startups continuously managed by inventors-founders coexist in equilibrium with...

By exploring the patterns of laser-diode technological development in the U.S. and Japan and theoretically examining market conditions and institutions that promote entrepreneurial spin-outs from a parental company, this study reveals how the existence and absence of entrepreneurial spin-out...

The objective of this paper is to perform a first evaluation of the macroeconomic impact of venture capital (VC). The main assumption is that VC can be considered as being similar to business R&D performed by large firms. It can therefore contribute to economic growth through two main channels....

This book addresses three important concepts in the economy-competition, innovation, and growth-using various cases and available data in Japan and other countries. First, the authors discuss competition, including global competition, to provide a better understanding of competition policy in...

We explore how firms grow by adding products. In contrast to most earlier work on the topic, our conceptual and empirical framework allows for separate treatment of product innovation (vertical differentiation) and diversification (horizontal differentiation). The market context is Japan's...