By Tony Fu-Lai Yu
This can be the 1st systematic examine of the character, operation and contribution of entrepreneurship to the expansion of Hong Kong. From a brand new entrepreneurial point of view of monetary improvement, the writer argues that the luck of Hong Kong is attributable mostly to adaptive entrepreneurship: product imitation; small scale company; subcontracting and spatial arbitrage.
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Extra info for Entrepreneurship and Economic Development in Hong Kong (Routledge Advances in Asia-Pacific Business, 5)
Whenever an economy reacts to an increase in population by simply adding the new brains and hands to the working force in the existing employment, or an industry reacts to a protective duty by expansion within its existing practice, we may speak of the development as adaptive response. And whenever the economy or an industry or some firms in an industry do something else, something that is outside of the range of existing practice, we may speak of creative response. (Schumpeter 1947b, p. 150) Moreover, adaptive response follows creative response (Schumpeter 1934, p.
TOWARDS AN ENTREPRENEURIAL PERSPECTIVE OF ECONOMIC DEVELOPMENT Schumpeterian and Kirznerian modes of entrepreneurship Cheah (1989a, 1993) identified conceptually two distinct modes of entrepreneurship, namely Schumpeterian and Austrian, and analysed their relationship in economic development In Cheah’s view (1992) the dynamic interactions between Schumpeterian entrepreneurs who are responsible for creative responses, and Austrian entrepreneurs, who are responsible for adaptive responses, constitute the entrepreneurial process.
In the adoption of new technology, the traditional theory assumes that profitable innovations will always be adopted because it is an obvious corollary to the usual profit maximising postulate. Leibenstein argued that if we recognise that there are some influences due to inertia or personality differences among decision-makers, 17 ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT then there is a possibility that the most profitable innovations will not always be adopted. Such factors are important in economic growth.