Entrepreneurship and Advanced Technical Knowledge

In the spirit of traditional studies of entrepreneurship, this article poses the question of what entrepreneurs do to create economic value by focusing on occupations where entrepreneurial ac- tivities involve learning, adopting and implementing advanced technical knowledge. We pursue the idea that one's capability to understand the complex nature of the production technology is a key determinant of value creation in entrepreneurship. In a uni…ed conceptual framework, we demonstrate that entrepreneurs possessing su¢ ciently high skills in and knowledge about advanced technology earn a positive premium as compared to similar paid workers, but entre- preneurs who locate too far away from their set of skills in the technology space earn negative returns. Our empirical analysis, utilizing information from Scientists and Engineers Statistical Data System, indicates that entrepreneurial rewards crucially depend on the capability to adopt and implement advanced technical knowledge.