Journal of Economic Literature
ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)
Innovation-Driven Entrepreneurship
Journal of Economic Literature
(pp. 89–140)
Abstract
Innovation-driven entrepreneurship (IDE) is viewed as a key driver of economic growth. This review provides a structured guide to the key themes of the growing literature on the economics of IDE, which differs substantially in its nature from other types of entrepreneurship. We describe the key themes of the growing literature, speaking to the central economic questions raised by IDE, including who enters into IDE activity, the nature of its founding teams and organization, its financing, the strategic choices faced by IDE founders, and policy and programs to support IDE activity. The tendency of much of the empirical economics literature to date to confound IDE with other types of entrepreneurial ventures offers a significant opportunity for research focused specifically on the IDE phenomenon.Citation
Botelho, Tristan L., Daniel C. Fehder, and Yael V. Hochberg. 2026. "Innovation-Driven Entrepreneurship." Journal of Economic Literature 64 (1): 89–140. DOI: 10.1257/jel.20251484Additional Materials
JEL Classification
- G24 Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
- G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- J23 Labor Demand
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- L26 Entrepreneurship
- M13 New Firms; Startups
- O31 Innovation and Invention: Processes and Incentives