Journal of Economic Literature
Book Reviews
2026-08-28
Victor Aguirregabiria of U of Toronto reviews “Entrepreneurship, Growth, and Innovation: The Dynamics of Firms and Industries” by Enrico Santarelli,. The EconLit Abstract of the reviewed work begins “Thirteen papers explore the factors that combine with entrepreneurship and innovation to influence firm and industry dynamics. Papers discuss a market model of perfect competition under uncertainty--heterogeneous firms and technologies; industry dynamics a la Stackelberg with stochastic capital accumulation; Gibrat's law--an overview of the empirical literature; entrepreneurship in the old and new Europe; new firm formation and the region--empirical results from the United States; research and development intensity and the relationship between firm size and growth in Germany; Gibrat's Law in a medium-technology industry--empirical evidence for Italy; entrepreneurship, innovation, and the evolution of industrial districts; innovation premium and the survival of entrepreneurial firms in the Netherlands; foreign presence, technical efficiency, and firm survival in Greece--a simultaneous equation model with latent variables approach; entrepreneurship, industrial restructuring, and unemployment in Portugal; transferring the risk of failure, entrepreneurship, and firm dynamics in Turkish manufacturing; and what is the best policy for innovative entrepreneurship. Santarelli is Professor of Economics at the University of Bologna and Research Professor at the Max Planck Institute of Economics. Author and subject indexes.”