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 … entrepreneurship may be an important new approach to promoting economic growth. …

This paper shows how and why the Solow growth accounting framework is useful for linking entrepreneurship capital to … economic growth. The knowledge filter impedes the spillover of knowledge for commercialization, thereby weakening the impact of … knowledge investments on economic growth. By serving as a conduit for knowledge spillovers, entrepreneurship is the missing link …