the relationship between entrepreneurship, innovation and economic development.

Discuss the relationship between entrepreneurship, innovation and economic development. What role does sustainability play in this relationship? Refer to both theories and examples from the business world to support your discussion.

1. Introduction
Entrepreneurship firstly arise from Richard Cantillon’s Essai sur la Nature du Commerce en Général, originally refers to the behavior people aim to become an entrepreneur. Currently, it is an increasingly heated issue worldwide because its power on driving innovation, productivity, job creation and economic development (Fisher, 2010). Schumpeter (1934) defined entrepreneurship as a creative response to potential opportunity and innovation means creating something original, innovative and significant that makes difference in a market or society (Frankelius, 2009). With respect to the relationship between entrepreneurship, innovation and economic development, Schumpeter (1934) highlights the role of entrepreneurship is the catalyst of economic development through innovation. However, recent research discovered that the level of economic development, in turn, has significant influence on entrepreneurship and innovation. Hence, in my opinion, entrepreneurship has important positive effects on economic development in terms of innovation, whereas economic development also affects entrepreneurship and innovation. At the same time, sustainability, which is always combined with entrepreneurship, innovation and economic development frequently arises in government policies or academic research, is another popular topic now. This essay will elaborate the relationship between entrepreneurship, innovation and economic development respectively with theoretic literature and business cases in section 2, and then in section 3, the role of sustainability in this relationship will be illustrated.

2. The relationship between entrepreneurship, innovation and economic development.

2.1 Entrepreneurship and innovation
Numerous

References: Acs, Z. J., Audretsch , D. and Evans, D. (1994). Why does the Self-employment Rate Vary Across Countries and Over Time. CEPR Discussion Paper, 871. Allen, T., Tainter, J. and Hoekstra, T. (2003). Supply Side Sustainability. New York: Columbia University Press. Artadi, E. V. and Xavier. (2004). The Global Competitiveness Index, Global Competitiveness Report. Global Economic Forum. Audretsch, D. B. and Keilbach , M. (2004). Entrepreneurship Capital and Economic Performance. Regional Studies, 38(8), 949-959. Casson, M. (1982). The Entrepreneur: An Economic Theory. Oxford: Barnes and Noble Books. Collaborative Economies. (2008). The Innovation Driven Economic Development Model: A practical guide for the regional innovation broker. Drucker, P Fisher, G. (2012). Effectuation, Causation, and Bricolage: A Behavioral Comparison of Emerging Theories in Entrepreneurship Research. Entrepreneurship Theory and Practice, 36(5), 1019-1051. Frankelius, P. (2009). Questioning two myths in innovation literature. Journal of High Technology Management Research, 20(1), 40-51. Hindle, K. (2010). How community context affects entrepreneurial process: A diagnostic framework. Entrepreneurship and Regional Development: An International Journal, 22(7-8), 599-647. Iyigun, M. F. and Owen, A. (1998). Entrepreneurship and Human Capital Accumulation: American Economic Review. Ameican Economic Review, 454-457. Kao, R. (2010). Sustainable Economy: Corporate, Social and Environmental Responsibility. Singapore: World Scientific. Kor, Y. Y. and Mahoney, J. T. (2004). Edith Penrose 's (1959) Contributions to the Resource-based View of Strategic Management. Journal of Management Studies, 41(1), 183-191. Linden, G., Kraemer, K. and Dedrick , J. (2007). Who Captures Value in a Global Innovation System? The case of Apple 's iPod. UC Irvine: Personal Computing Industry Center Lumsdaine, E Organization for Economic Co-Operation and Development. (1998) Fostering entrepreneurship. Paris, Organization for Economic Co-Operation and Development Paton, B Romer, P. (1990). Endogenous Technological Change. Journal of Political Economy , 98(5), 71-102. Schumpeter, J. (1934). The theory of Economic Development. Cambridge: Harvard University Press. Shane, S. (2003). A general theory of entrepreneurship: The individual-opportunity nexus. Cheltenham: Edward Elgar Publishing. Westhead, P., Wright, M. and McElwee, G. (2011). Entrepreneurship: Perspectives and Cases. Prentice Hall. Yamada, G. (1996). Urban Information Employement and Self-Employment in Developing Countries: Theory and Evidence. Economic Development and Cultural Change(44), 289-314. Yao, Q., Pan, Q. and Yuan, L. (2010). Cases of sustainable entrepreneurship in China. Northern Economy, 6, 63-66.