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1、P1:JZZ0521843227preCUNY376B/Armington0521856809April26,200614:31ThispageintentionallyleftblankiiP1:JZZ0521843227preCUNY376B/Armington0521856809April26,200614:31Entrepreneurship,Geography,andAmericanEconomicGrowthKnowledgehasbecometheprimaryfuelforeconomicgrowthinthetwe
2、nty-?rstcen-tury.Throughthemechanismofknowledgespillovers,thefullpotentialofknowledgeasthefuelforeconomicgrowthexpandswiththeincreasinginteractionofpeople.Theauthorspresentaknowledgespillovertheoryofentrepreneurshiptoexplaingeographicvariationsinlocalratesofeconomicgro
3、wth.Centraltoentrepreneur-shipistheprocessofdiscoveringanopportunitytocreatevaluethroughinnova-tion.Entrepreneursarerewardedfortransformingknowledgeintonewproductsandbringingthemtomarket.The1990sshowedthatgrowthintheAmericaneconomyisdependentonknowl-edgespilloversamong
4、primarilycollege-educatedworkerswhostartnewbusinessestopro?tfromideastheydevelopintocompetitivenewproductsandservices.UsingcomprehensiveannualbusinessdatafromtheU.S.BureauoftheCensus,theauthors?ndthattheregionswiththehighestratesofnew-?rmformationarethefastest-growinge
5、conomicareas.The“industrialpolicies”ofthe1980sdidnotproveeffectiveatincreasinggrowthorcompetitiveness,becausetheywerebasedontraditionalmodelsofeconomicgrowth,whichassumestablepopulationsofbusiness?rms.Policiestosupporthigherratesofregionalgrowthshouldfocusonseedingentr
6、epreneurship.Suchpoliciespromoteoccupationalchoice,enablethecommercializationofnewtechnology,andenhancethespilloversofknowledge.ZoltanJ.AcsisUniversityProfessorintheSchoolofPublicPolicy,GeorgeMasonUniversity,andaResearchScholarattheMax-PlanckInstituteforEconomics,Jena,
7、Germany.PreviouslyhewasaResearchFellowattheU.S.BureauoftheCensusandChiefEconomistattheU.S.SmallBusinessAdministration.ProfessorAcshaspublishedmorethan75scholarlyarticlesinleadingacademicjournals,includingTheAmericanEconomicReviewandTheReviewofEconomicsandStatistics.His
8、pri-maryresearchinterestsareentrepreneurship,technologicalchange,andeconomicdevelopment.HeisthefounderandeditorofSmal