The use of knowledge in technology entrepreneurship: A theoretical foundation

While technology entrepreneurship has been widely recognized as a driver of economic growth, there exists little in the way of a unified framework for understanding technology entrepreneurship and assessing its value proposition, particularly when network externalities and information are involved. In this paper we bring together several strands of literature and identify the components that form a foundation for understanding modern technology entrepreneurship. In particular, technology functions as a capital good that embodies knowledge about performing productive tasks, and the value of this knowledge depends on how well it is able to utilize decentralized local knowledge and spontaneous orders.