Dynamics of new firm formation: impacts of economic and technology policy

This study investigates how entrepreneurial policies that encompass opportunity, individual, and resource aspects of entrepreneurship explain dynamics of new firm formation in a country. We rely on the Schumpeterian, industrial organization economics, and organizational ecology traditions, and performed an exploratory test with a longitudinal U.S. data (1968-1993). The results of this study suggest that technological knowledge capital, economic opportunity structure, labor mobility, and a nation´s carrying capacity for entrepreneurial activities are important areas in which government policy can positively influence the intensity of new firm formation.