entrepreneurship literature is that opportunities are exogenous, the most prevalent theory of innovation in the economics literature … opportunity by developing a knowledge spillover theory of entrepreneurship. The basic argument is that knowledge created … endogenously via R&D results in knowledge spillovers. Such spillovers give rise to opportunities to be identified and exploited by …

The intellectual breakthrough contributed by the new growth theory was the recognition that investments in knowledge … and human capital endogenously generate economic growth through the spillover of knowledge. Endogenous growth theory does … not explain how or why spillovers occur. The missing link is the mechanism converting knowledge into economically relevant …