Enterprise and Small Business Principles

Learning objectives

There are six learning objectives in this chapter:

1 To understand how entrepreneurship, firm size and innovative activity are interrelated.

2 To gain basic understanding of the knowledge production function.

3 To illustrate how conventional empirical measures of innovative activity may be misleading.

4 To recognise how the external industry environment, knowledge spill-overs, geo­graphic location, and scale economies influence the innovative process.

5 To observe that entrepreneurship and small firms play a key role with respect to technological change and innovation.

6 To understand how public policy promotes small firm innovation.

Key concepts

■ entrepreneurship ■ innovative activity ■ firm size ■ technological change

■ knowledge production function

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