Although these early writings emphasized the role of entrepreneurship, the place of the entrepreneur in traditional economics presents theoretical difficulties. Alfred Marshall for example, observed that in the long-run equilibrium of a completely competitive market, there was no room for “entrepreneurs” as innovators. William Baumol is given credit for his own painstaking efforts to convince economists to make a bit more room for entrepreneurs in their theories. Baumol 's book, "The Microtheory of Innovative Entrepreneurship" is the first formal theoretical analysis in economics of the role of innovative entrepreneurs. In …show more content…
The idea behind this logic is that economic growth is non-uniform geographically and takes place around specific poles in any particular region. Growth Pole theory is based on Schumpeter’s Analysis of economic development. According to Schumpeter, economic growth or development occurs as a result of discontinuous spurts in a dynamic world. The growth poles are characterized by key industries around which key industries develop, through direct or indirect effects. The expansion of this key industry implies the expansion of output, employment, related investments as well as new technology and new industrial