posted on 2023-05-17, 05:06authored byDarroch, J, Miles, M, Paul, C
This study views entrepreneurial rents as renewable opportunities and explores how firms can effectively utilize corporate venturing to create and sustain economic rents. Schumpeterian entrepreneurs create rents by harnessing corporate venturing to exploit attractive economic opportunities. The Schumpeterian rent is composed of Ricardian and Austrian rents. Ricardian rents result from unique and non-reproducible characteristics or competencies of the firm, and hence, are not appropriable by imitators. Conversely, Austrian rents, or economic profit, are subject to dissipation by imitators and attract entry by competitors or Austrian entrepreneurs until they are bid to zero or destroyed by another Schumpeterian innovation. In this formulation, Austrian entrepreneurs are modeled as infra-marginal rent seekers. Consequently, to sustain rents, firms must cycle between using corporate venturing to create or discover Schumpeterian entrepreneurial opportunities and using venturing as a mechanism to exploit existing rent generating opportunities.
History
Publication title
Technovation
Volume
25
Issue
12
Pagination
1437-1442
ISSN
0166-4972
Department/School
TSBE
Publisher
Elsevier Sci Ltd
Place of publication
The Boulevard, Langford Lane, Kidlington, Oxford, England, Oxon, Ox5 1Gb
Rights statement
The definitive version is available at http://www.sciencedirect.com