Entrepreneurs generally lack the marketing capabilities necessary to bring their new product to market. To engage the resources required to do this, they must somehow place a value on the enterprise. However, all of the methods of valuation currently available are based on the use of historical or current revenues, and therefore are not applicable to an entrepreneurial enterprise with a first-time product. In Valuing an Entrepreneurial Enterprise, Audretsch and Link present a valuation method uniquely tailored to emerging technology-based ventures that have no revenue history to lean on. Unlike many traditional methods, theirs does not take into account the track record of companies and products similar to that being valuated. Instead, it draws on economic theory to formulate a solution to the problem.
The book develops conceptual ground, including trends in entrepreneurship, models of innovation, and the economics of standards and entrepreneurship policy. The authors review the traditional valuation methods and illustrate them numerically with case studies to show how the traditional approach produces an incorrect valuation. The core of the book presents the new methodology and demonstrates how it avoids the pitfalls of past approaches. The authors also show how public policy on technology and infrastructure changes valuations of start-up firms in areas such as stem-cell products and renewable fuels projects.
Valuing an Entrepreneurial Enterprise will serve as a valuable resource for advanced students, economists, financial planners, and valuators interested in new valuation methods and the theory behind them, as well as those interested in entrepreneurship.

Public sector entrepreneurship refers to innovative public policy initiatives that generate greater economic prosperity. These initiatives can transform a status quo economic environment into one that is more conducive to economic units engaging in creative and innovative activities in the face of uncertainty. Public Sector Entrepreneurship traces the historical development of the concepts of private and public sector entrepreneurship and their connection to the separate notions of risk and uncertainty. Based on a formal conceptualization of these notions, the book illustrates throughout public sector entrepreneurship in practice using examples from U.S. technology and innovation policy. Technology policy-policy to enhance the application of new knowledge, learned through science, to some known problem-and innovation policy-policy to enhance the commercialization of a technology-are quintessential examples of the public sector recognizing and exploiting opportunities to bring about change and efficiency. Using this concept of public sector entrepreneurship as the lens to view the Bayh-Dole Act of 1980, the Stevenson-Wydler Act of 1980, the R&E Tax Credit of 1981, Small Business Innovation Development Act of 1982, the National Cooperative Research Act of 1984, and the Omnibus Trade and Competitiveness Act of 1988 affords us the ability to find elements of commonality among these policies and to discuss their impact on the U.S. economy from the perspective of entrepreneurial action.

In light of a history of legislative actions in the United States to encourage collaborative R&D, this book characterizes U.S. collaborative R&D through the eyes of the National Research Joint Venture Database. Facilitating a fresh statistical look at collaborative R&D as a purposive strategy in the light of existing public policies, this book also provides a critical evaluation of the effectiveness of those attendant policies. Through an original project-based micro database, the author reveals the patterns of competitive behavior associated with collaborative R&D. Accompanied by follow-up statistical and econometric analyses, readers are not only confronted with what might be the most complete picture of U.S. collaborative R&D to date, but they are also provided with key indications of the effectiveness of U.S. legislative actions which is set to inspire further collaborations in research.

This book presents a reader-friendly analysis and synthesis of the key economic and management approaches to innovation, entrepreneurship, and technological change. Link and Siegel provide precise definitions of key concepts, present numerous historical examples to illustrate these concepts, outline a framework for analyzing key topics, compare and contrast different theoretical frameworks, provide a reader-friendly interpretation of quantitative and qualitative findings, and emphasize international comparisons of innovation infrastructure and technology policy.
Key topics covered include:
DT basic concepts of innovation and technological change,
DT a history of the role of the entrepreneur in innovation,
DT the impact of innovation and information technology on performance,
DT the analysis of technological spillovers,
DT innovation in the service sector,
DT university technology commercialization and entrepreneurship, including property-based institutions such as research parks and incubators,
DT entrepreneurship in the public sector,
DT the first systematic analysis and synthesis of the new interdisciplinary literature on technology commercialization and entrepreneurship at universities.
While the book reflects the complexities of debate around these topics, it will be an important guide to the area for academics, graduate, and advanced undergraduate students of Business Studies, Economics, Entrepreneurship, and Innovation Studies. The book also provides a roadmap of specific recommendations for managers and policymakers.

This book examines knowledge-intensive entrepreneurship (KIE) with a focus on the European textile and apparel industries. The primary purpose is to review the extant academic literature related to the European textile and apparel industries and reflect on that review empirically using a new and robust database on KIE to discover patterns between human capital and strategic entrepreneurial and innovative behavior. According to the Advancing Knowledge-Intensive Entrepreneurship and Innovation for Economic Growth and Social Well-being in Europe (AEGIS) project, KIE is defined as an interface between knowledge generation and diffusion and the productive system. Knowledge-intensive entrepreneurs are thus involved in mechanisms that translate knowledge into innovation, which in turn leads to economic development and growth within an industry and/or region. To date, KIE is often associated with high-tech industries such as aerospace, computer engineering, automotive or telecommunications. For this reason, few studies have been conducted that specifically examine KIE as an avenue for firm or sector growth in the textile and apparel industries. However, new studies have positioned these industries as ones in which KIE can foster growth through innovation, and where products and processes are often evaluated within a knowledge-based framework. Building on this growing literature base, this volume explores potential policies and strategies for driving innovation and growth at the firm and industry levels in Europe and other regions, including the United States.

This book explores public sector entrepreneurship from an international perspective. It features essays from eminent scholars in the field addressing entrepreneurial public policies from different countries. Public sector entrepreneurship is at the cusp of becoming a watchword in international policy circles. This book is a pioneer volume in this emerging field and provides topics and policies that are broadly applicable across different economies. Public sector entrepreneurship refers to innovative public policy initiatives that generate greater economic prosperity by transforming a status-quo economic environment into one that is more conducive to economic units engaging in creative activities in the face of uncertainty. In today's economy, public sector entrepreneurship affects that transformation primarily by increasing the effectiveness of knowledge networks; that is, by increasing the heterogeneity of experiential ties among economic units and the ability of those same economic units to exploit such diversity. Through policy initiatives that are characterized by public sector entrepreneurship, there will be more development of new technology and hence more innovation throughout the economy.

Scholars in the science and technology field have not collectively questioned, much less proposed, an agenda for policy makers. Now is an appropriate time for such an undertaking. First, there is a growing belief that the U.S. national research and development system, like that of many industrial nations, is changing due to global competitive pressures and advancements in information technology and electronic commerce. Second, industry's R&D relationship with the academic research community is changing not only because of the global competition but also because of alterations in the level of government support of fundamental research. As a result, policy makers will need to rethink their approaches to science and technology issues. This volume is a collection of essays by scholars about innovative policy in the knowledge-based economy. By knowledge-based economy we mean one for which economic growth is based on the creation, distribution, and use of technology. As such, innovation policy in such an economy must enhance the creation, distribution, and use of knowledge that leads to the creation, distribution, and use of technology. This volume considers elements of an innovation policy: innovation policy and academic research, innovation policy in electronic commerce, and innovation policy and globalization issues.

Research and development (R & D) leads to innovation, and innovation leads to technological change. Technological change, in turn, is the primary driver of economic growth. Public/private partnerships -- cooperative relationships among industry, government, and/or universities -- leverage the efficiency of R & D and are thus a critical aspect of a nationa (TM)s innovation system.

This text is intended for upper-level undergraduate and MBA courses such as Economics and Technology, Economics of Innovation, and Economics of Science and Technology, among others. The first chapter introduces the concept of public/private research partnerships along with other concepts fundamental to an understanding of innovation and technology policy. The framework chapters (2-5) set forth an argument for the publica (TM)s role a" governmenta (TM)s role a" in innovation in general and in public/private partnership in particular. The remaining chapters (6-14) describe a number of public/private partnerships and, to the extent possible, evaluate their social impact.

In an era of intense knowledge-based globalization and technology-based competition, the central role of networks, alliances and partnerships is now becoming recognized. By looking at the dynamics of these strategic organizational activities, leading authors in the field examine, in this book, how firms align themselves, how they use networks and enter into partnerships in order to develop new or radically improved processes, and how they introduce new or radically improved products to the market. The topic excludes, as the primary interest, spatial effects, such as those found in geographic clusters, or in regional innovation systems. The focus here is instead on the innovation process, and therefore examines framework issues about how we can assess networks of innovators, measurement issues for both researchers and official statisticians, and impact issues for both industry strategists and policy makers.

Using an evolutionary perspective, and drawing on a range of disciplines, Networks, Partnerships and Alliances explores important issues at the conceptual, methodological and comparative levels concerning the construction of comparative advantage.

Inadequate investment in innovation is particularly costly in today's globally competitive environment where continued technological advancements are critical to sustaining economic prosperity. The government has a critical role in ensuring that society's general interest in innovation, and the public good associated with innovation, is represented in private-sector decision making. This can be accomplished through a variety of programs and initiatives that reward innovation at all levels. The various activities that make this possible fall into two general categories: (1) the creation and maintenance of a legal environment that encourages private sector investment in innovation (patents and the relaxation of antitrust); and (2) the provision of incentives to overcome the natural inclination of private parties to consider only their private benefits when choosing the level of innovation in which to invest (governmental grants and contracts to targeted tax incentives). The role of government, more specifically, can be found in three key areas: (1) funding of research and development performed in the private sector; (2) funding of Federal laboratory research activities and the effective transfer of that knowledge to the private sector; and (3) encouraging the industry-university collaboration in research and development. It is these three areas of research that generate technologies fundamental to increasing the rate of technological development in the private sector, and it is these areas that are the focus of this book.

The impact of technological change on the wider economy, especially its impact on economic growth, has been one of the key themes in the transition from the industrial age to the information age.

Public Accountability: Evaluating Technology-Based Institutions presents guidelines for evaluating the research performance of technology-based public institutions, and illustrates these guidelines through case studies conducted at one technology-based public institution, the National Institute of Standards and Technology (NIST). The aim of this book is to demonstrate that a clear, more precise response to the question of performance accountability is possible through the systematic application of evaluation methods to document value. The authors begin with a review of the legislative history of fiscal accountability beginning with the Budget and Accounting Act of 1921, and ending with the Government Performance and Results Act of 1993. A discussion of existing applicable economic models, methods, and associated metrics follows. The book concludes with evaluation case studies.

This book is the first collection of scholarly writings on science and technology parks (STPs) that has an international perspective. It explores concrete ways to systematically collect information on public and private organizations related to their support of and activities in STPs, including incubation to start-up and scale-up, and collaborations with centers of knowledge creation. Rather than perpetuate the qualitative assessment of successful practices, the focus of this book is to present quantitative and qualitative evidence of the impact of STPs on regional development and to raise awareness on the importance of systematic data collection and analysis. Only through a systematic collection of data on fiscal identification numbers of companies, universities, and university spin-offs will it be possible to conduct current and especially future analyses on the impact of STPs on entrepreneurship, effectiveness of technology transfer, and regional economic development. To this extent, the synergistic views of academics, representatives from STPs, and policy experts are crucial.

The relationship between the innovative behavior and the minority status, gender, and immigration status of, for example, owners, directors, principal investigators, and project managers has only begun to be explored, especially within and among entrepreneurial organizations. Data limitations are certainly one culprit for the paucity of research in this area, but also the economics literature has been slow to move from a technical capital (i.e., investments in R&D) to an innovative behavior focus to an alternative focus that examines the relationship between dimensions of human capital of those who are involved with R&D investments and resulting innovative behavior. The chapters in this edited volume advance this body of thought. These chapters represent foundational research for a nature versus nurture discussion as it relates to innovative behavior, especially a discussion that considers the innovative behavior within and among entrepreneurial organizations. The chapters in this book were originally published as a special issue of Economics of Innovation and New Technology.

Metrology is the study of measurement science. Although classical economists have emphasized the importance of measurement per se, the majority of economics-based writings on the topic have taken the form of government reports related to the activities of specific national metrology laboratories. This book is the first systematic study of measurement activity at a national metrology laboratory, and the laboratory studied is the U.S. National Institute of Standards and Technology (NIST) within the U.S. Department of Commerce. The primary objective of the book is to emphasize for academic and policy audiences the economic importance of measurement not only as an area of study but also as a tool for sustaining technological advancement as an element of economic growth. Toward this goal, the book offers an overview of the economic benefits and consequences of measurement standards; an argument for public sector support of measurement standards; a historical perspective of the measurement activities at NIST; an empirical analysis of one particular measurement activity at NIST, namely calibration testing; and a roadmap for future research on the economics of metrology.

Technology transfer-the process of sharing and disseminating knowledge, skills, scientific discoveries, production methods, and other innovations among universities, government agencies, private firms, and other institutions-is one of the major challenges of societies operating in the global economy. This volume offers state-of-the-art insights on the dynamics of technology transfer, emerging from the annual meeting of the Technology Transfer Society in 2011 in Augsburg, Germany. It showcases theoretical and empirical analyses from participants across the technology transfer spectrum, representing academic, educational, policymaking, and commercial perspectives. The volume features case studies of industries and institutions in Europe, the United States, and Australasia, explored through a variety of methodological approaches, and providing unique contributions to our understanding of how and why technology transfer is shaped and affected by different institutional settings, with implications for policy and business decision making.

Metrology is the study of measurement science. Although classical economists have emphasized the importance of measurement per se, the majority of economics-based writings on the topic have taken the form of government reports related to the activities of specific national metrology laboratories. This book is the first systematic study of measurement activity at a national metrology laboratory, and the laboratory studied is the U.S. National Institute of Standards and Technology (NIST) within the U.S. Department of Commerce. The primary objective of the book is to emphasize for academic and policy audiences the economic importance of measurement not only as an area of study but also as a tool for sustaining technological advancement as an element of economic growth. Toward this goal, the book offers an overview of the economic benefits and consequences of measurement standards; an argument for public sector support of measurement standards; a historical perspective of the measurement activities at NIST; an empirical analysis of one particular measurement activity at NIST, namely calibration testing; and a roadmap for future research on the economics of metrology.

In order to understand collaborative research activity in the United States, it is important to understand the contextual environment in which firms pursue a collaborative research strategy. The U.S. environment for formal collaborative research was established through a number of policy initiatives promulgated in the 1980s in response to the widespread productivity slowdown throughout industry that began in the early 1970s and then intensified in the late 1970s and early 1980s. These initiatives include the Bayh-Dole Act of 1980, the Stevenson-Wydler Act of 1980 and its amendments, the National Cooperative Research Act of 1984 and its amendments, and the Federal Technology Transfer Act of 1986. Collaborative Research in the United States offers a critical and retrospective description of collaborative research activity in the United States in an effort to provide a prospective framework for policymakers to evaluate future policy initiatives to encourage such strategic behavior. The analysis that underlies the policy framework draws from the performance of U.S. firms' experiences, presenting a quantitative foundation for recommendations about future policy initiatives. It will be of interest to researchers, academics, policymakers, and students in the fields of critical management studies, strategic management, economics, and public policy.

This volume brings together eminent international scholars to discuss and analyze regional and national technology and innovation policies from an economic assessment or economic impacts perspective. The analysis covers policies relevant to countries in Europe and Asia, and the United States. Not only might this volume initiate further study of technology and innovation policies, on a country-by-country basis, but also it might open doors for comparative policy analysis. This book was originally published as a special issue of Economics of Innovation and New Technology.

We must all hang together or surely we will all hang separately. Benjamin Franklin The significant apathy that characterized relationships between indus try and universities and the adversarial nature of relationships between industry and government have both faded rapidly in the 1980s as the realities of global competition have surfaced in the United States. Both industry and government leaders articulate a number of constructs for regaining our competitiveness in world markets. One of the more fre quent strategies prescribed in this new competitiveness era is cooperation. Different individuals or groups may espouse different definitions, inter pretations, or areas of emphasis, but the overall importance of this concept is substantial. Although examples of cooperative research have existed for several decades, the number and variety of relationships have expanded rapidly in the 1980s as corporations, universities, and governments have embraced this strategy. Joint ventures involving two or three firms increased from under 200 per year in the 1970s to over 400 per year by the mid-1980s. Multiple-firm cooperative arrangements are a more recent phenomenon, made possible by the National Cooperative Research Act of 1984. By mid- 1988,81 of these industry-level consortia had formed under the provisions of the 1984 Act. The rapid growth in cooperative research and development (R&D) is primarily a response to the pressures of international competition. As a corporate strategy, cooperative R&D meets short-term needs for assets to implement new approaches for coping with intensifying competition."

In order to understand collaborative research activity in the United States, it is important to understand the contextual environment in which firms pursue a collaborative research strategy. The U.S. environment for formal collaborative research was established through a number of policy initiatives promulgated in the 1980s in response to the widespread productivity slowdown throughout industry that began in the early 1970s and then intensified in the late 1970s and early 1980s. These initiatives include the Bayh-Dole Act of 1980, the Stevenson-Wydler Act of 1980 and its amendments, the National Cooperative Research Act of 1984 and its amendments, and the Federal Technology Transfer Act of 1986. Collaborative Research in the United States offers a critical and retrospective description of collaborative research activity in the United States in an effort to provide a prospective framework for policymakers to evaluate future policy initiatives to encourage such strategic behavior. The analysis that underlies the policy framework draws from the performance of U.S. firms' experiences, presenting a quantitative foundation for recommendations about future policy initiatives. It will be of interest to researchers, academics, policymakers, and students in the fields of critical management studies, strategic management, economics, and public policy.

In Public Goods, Public Gains, Link and Scott discuss the systematic application of alternative evaluation methods to estimate the social benefits of publicly financed research and development (R&D). The authors argue that economic theory should be the guiding criterion for any method of program evaluation because it focuses attention on the value and the opportunity costs of the program. The evaluation methods discussed and illustrated are both economics and, for comparison, non-economics based.
The book is motivated by four foundation chapters that discuss government's role in innovation from the perspective of economic theory, review public accountability issues from both a constitutional and an historical perspective, overview systematic approaches to program evaluation, and describe the evaluation metrics typically used. Four case studies illustrate the four alternative evaluation approaches discussed. These case studies are for the U.S. Advanced Technology Program's intramural research awards program, the U.S. National Institute of Standards and Technology's research on wavelength references for optical fiber communications, the U.S. Malcolm Baldrige National Quality Award, and the Advanced Technology Program's focused program on the integration of manufacturing applications.

Science and technology have long been regarded as important determinants of economic growth. Edwin Mansfield (1971, pp. 1- 2), a pioneer in the economics of technological change, noted: Technological change is an important, if not the most important, factor responsible for economic growth . . . without question, [it] is one of the most important determinants of the shape and evolution of the American economy. Science and technology are even more important in the "new economy," with its greater emphasis on the role of intellectual property and knowledge transfer. Therefore, it is unfortunate that most individuals rarely have the opportunity to explore the economic implications of science and technology. As a result, the antecedents and consequences of technological change are poorly understood by many in the general public. This lack of understanding is reflected in a recent survey conducted by the National Science Board (2000), summarized in Science & Engineering Indicators. ' As shown in Table 1. 1, the findings of the survey indicated that many Americans, despite a high level of interests in such matters, are not as well-informed about technological issues as they are about other policy issues. As shown in the table, individuals self assess, based on a scale from 1 to 100, their interest in science and technology policy issues as being relatively high, yet they self assess their knowledge or informedness about these issues relatively lower.

Using a cutting-edge structure, where a current description of the service sector and up-to-date case studies are compared and contrasted with innovative activity in manufacturing, this book contributes towards a better theoretical understanding of innovation in the U.S. service sector. The U.S. service sector is the largest sector in the U.S. economy and accounts for an increasingly significant share of U.S. gross domestic product, currently 68 percent. Both in the United States, as well as in other industrialized nations, the service sector is a dynamic component of economic activity and growth. As pervasive and economically important as the service sector is, innovative activity in service-sector firms remains somewhat of an enigma; it is not well understood and not well defined because it differs dramatically from the traditional model of innovation in manufacturing. Innovation in the U.S. Service Sector fills this void, placing emphasis on the United States, but with global relevance. It is essential reading for all students of business and management, economics and political science.

Technology infrastructure supports the design, deployment and use of both individual technology-based components and the systems of such components that form the knowledge-based economy. As such, it plays a central role in the innovation process and in the promotion of the diffusion of technologies. Thus, it is an important element contributing to the operation of innovation systems and innovation performance in any modern economy. Technology infrastructure, either in the narrow or broad sense, is not well understood as an element of a sector's technology platform or of a national innovation system. Similarly misunderstood are the processes by which such infrastructure is embodied in standards or diffused through various institutional frameworks. In fact, because of the public and quasi-public good nature of technology infrastructure, firms as well as public-sector agencies under invest in it, thus inhibiting long-term technological advancement and economic growth. This volume of essays brings together a collection of papers from eminent scholars on all of the various dimensions of technology infrastructure mentioned above. To our knowledge, it is the first such collection of papers and we expect this scholarship to become the foundation for future research in this area. This book was published as a special issue of Economics of Innovation and New Technology.