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David Audretsch

Distinguished Professor; Ameritech Chair of Economic Development; Director, Institute for Development Strategies at Indiana University

David Audretsch is a Distinguished Professor and the Ameritech Chair of Economic Development at Indiana University, where he also serves as director of the Institute for Development Strategies. He is an Honorary Professor of Industrial Economics and Entrepreneurship at the WHU-Otto Beisheim School of Management in Germanyand a part-time professor of entrepreneurship at the University of Klagenfurt in Austria.

David’s research has focused on the links between entrepreneurship, government policy, innovation, economic development, and global competitiveness. He is co-founder and Editor-in-Chief of Small Business Economics: An Entrepreneurship Journal. He was recognized as a 2021 Clarivate Citation Laureate and awarded the Global Award for Entrepreneurship Research by the Swedish Entrepreneurship Forum. He has received honorary doctorate degrees from the University of Augsburg in Germany, Jonköping University in Sweden, and the University of Siegen in Germany, and was also awarded the Schumpeter Prize from the University of Wuppertal in Germany.

[From https://oneill.indiana.edu/]

David Audretsch

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innovation and academic freedom

Decline in academic freedom is impacting innovation output, warns study

Innovation output is directly proportional to academic freedom and researchers warn that this has declined over the last decade for the first time since 1940s.

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According to Schumpeter’s theory of “creative destruction,” R&D should be countercyclical to the business cycle. Empirical evidence, however, consistently contradicts this view. The authors of this study argue that economic downturns increase the equity risk premium, which increases the “hurdle rate” or cost of (equity) capital that is applied to R&D project budgeting decisions, thus stifling corporate innovation.

A hurdle-rate theory of R&D procyclicality

According to Schumpeter’s theory of “creative destruction,” R&D should be countercyclical to the business cycle. Empirical evidence, however, consistently contradicts this view. The authors of this study argue that economic downturns increase the equity risk premium, which increases the “hurdle rate” or cost of (equity) capital that is applied to R&D project budgeting decisions, thus stifling corporate innovation.

Read more
Ukraine

The economic costs of the Russia-Ukraine conflict in terms of lost entrepreneurship

The common belief that wars can be good for the economy is a myth; empirical evidence shows consistently that war negatively affects GDP per capita, argue Hanna Motuzenko and Paul Momtaz, co-authors of a new paper analysing the economic impact of the conflict in Ukraine. 

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freedom democracy and entrepreneurship

Entrepreneurship and democracy in decline

Entrepreneurship has been on global decline since the turn of the century and so has democracy. This is not a coincidence according to David Audretsch of Indiana University He says “democracy and entrepreneurship are inextricably linked. Both are manifestations of the same underlying force — freedom of thought, decision-making and action.”

Read more
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  • Related posts

    • Decline in academic freedom is impacting innovation output, warns study
    • A hurdle-rate theory of R&D procyclicality
    • The economic costs of the Russia-Ukraine conflict in terms of lost entrepreneurship
    • Entrepreneurship and democracy in decline
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