Local Heroes in the Global Village: Globalization and the by Audretsch D.B., Grimm H., Wessner C.W.

By Audretsch D.B., Grimm H., Wessner C.W.

Entrepreneurship and development are important issues of coverage makers worldwide. neighborhood Heroes within the worldwide Village introduces public regulations for the promoting of entrepreneurship on a comparative, basically German-American point. The e-book contributes to the controversy what function public guidelines play in stimulating nationwide and neighborhood financial development. With a greater figuring out of the complexity and diversity of existent entrepreneurship guidelines within the U.S. and Germany the reader of this quantity might be capable of formulate most sensible perform, hands-on techniques which goal to advertise countries in addition to areas in an ''entrepreneurial economy''.

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This alternative involves shifting economic activity out of the traditional industries where the high-cost countries of Europe and North America have lost the comparative advantage and into those industries where the comparative advantage is compatible with both high wages and high levels of employment - knowledge based economic activity. Globalization has rendered the comparative advantage in traditional moderate technology industries incompatible with high wage levels. At the same time, the emerging comparative advantage that is compatible with high wage levels is based on innovative activity.

Based on R&D measures, SMEs accounted for only a small amount of innovative activity. The relative importance of SMEs was declining over time in both North America and Europe. In the post-war era, small firms and entrepreneurship were viewed as a luxury, perhaps needed by the west to ensure a decentralization of decision making, but in any case obtained only at a cost to efficiency. Certainly the systematic empirical evidence, gathered from both Europe and North Emergence of Entrepreneurship Policy 25 America documented a sharp trend towards a decreased role of SMEs during the post-war period.

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