Entrepreneurship, knowledge, and the industrial revolution

Artikel

This paper constructs a two-sector unified growth model. Learning-by-doing in agriculture eventually allows the preindustrial economy to leave its Malthusian trap. But entrepreneurs in the manufacturing sector do not attempt invention if not much is known about natural phenomena. This delays the industrial revolution. Since entrepreneurs identify new useful knowledge at all times in a serendipitous way, the industrial revolution is an inevitable outcome. The paper characterizes the equilibrium path from ancient times to the infinite future. According with this characterization, the model economy successfully captures the qualitative aspects of England's unified growth experience.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 9 ; Year: 2015 ; Issue: 2015-3 ; Pages: 1-54 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Innovation and Invention: Processes and Incentives ; Technological Change: Choices and Consequences; Diffusion Processes ; One, Two, and Multisector Growth Models ; Fertility; Family Planning; Child Care; Children; Youth ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Europe: Pre-1913
• Subject: Unified growth theory ; useful knowledge ; industrial enlightenment ; demographic transition ; endogenous technological change

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Attar, M. Aykut
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2015

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2015-3
• Handle: http://hdl.handle.net/10419/107211
• Last update: 10.03.2025, 11:43 AM CET