(Editor’s note: In a previous post, Temnick Teaching students about human capital.
Economics teachers always introduce their students to the factors of production — land, labor, and capital are all important — but too often one of the most important factors gets omitted. EntrepreneurshipHow can I teach this?
Start by asking volunteers to spell the following words out loud without looking at the reference material. EntrepreneurshipThe first student to get it wrong is given a buzzer, and the next student is given the next. Usually, it takes three tries before the student can spell it correctly. This may be why the term “” is replaced with “” in some textbooks. Enterprise I prefer the former term for this factor of production. (I have a constant goal of emphasizing spelling and geography lessons in my high school classrooms whenever I get the chance. I rotate seating in the classroom so that the student sitting under the world map is responsible for pointing out the locations of countries that come up in various lessons.)
After the lesson Human capitalI ask students how this factor of production differs from entrepreneurship and for examples. Inevitably, they mention mostly male tech entrepreneurs like Steve Jobs, Bill Gates, and Elon Musk. What about Taylor Swift? Or Oprah Winfrey? Acknowledging that these are certainly individual entrepreneurs, we discuss the definition of an entrepreneur. Entrepreneurship: take a risk, innovationthe organization of resources for production. It is a process of discovery, often involving many individuals working together over time to bring about small, and sometimes large, changes in a good, service, or process.
Tens of thousands of research and development departments at U.S. institutions grant patents for new inventions or modifications to existing products. intellectual property A patent gives its owner the right to stop others from copying, using, or selling an invention for a certain period of time. Approximately 90% of patents are awarded to businesses (companies, universities, and other organizations), and the rest are awarded to individual inventors. Entrepreneurs are granted either patents or copyrights depending on the type of intellectual property they create: patents are awarded for useful new products, while copyrights generally protect authors (books, software, music, etc.). The division of copyright between businesses and individuals depends on the type of creation.
So I ask: What are some recent examples of inventions of entirely new products? What are some examples of tweaks or modifications to existing products?
COVID-19 vaccines, AI-enabled health devices such as the Apple Watch and Fitbit, plant-based meat alternatives, TikTok, craft breweries, eco-friendly cosmetic packaging…the list goes on, as I type it into a document projected on the smartboard.
So which country in the world files the most patent applications? Which country obtains the most copyrights?
This is where I remind myself of my enormous responsibility to combine the institutions of a free market society with the incentives that allow entrepreneurship to thrive, not be driven by demographic differences or passionate patriotism.
Entrepreneurship thrives when contracts can be recognized by the courts and private property can be protected and used as collateral. Profit Companies and individuals invest their time and capital to innovate and earn and retain profits. These are just a few of the characteristics of an enterprising society. Other characteristics include an education system that fosters the exploration of creative endeavors, access to global markets, and cultural and community support for business ventures that encourage individuals to devote time, effort, and money to creating products and ideas. Adam Smith’s The Wealth of Nations, It clarifies how resources (factors of production) can be optimally allocated to produce the goods and services that society desires.
I promise my students that I will revisit several of the topics covered in this discussion, but it’s never too early to strengthen your connection to the market. Returning to the question, “Who leads the world in patents and copyrights, the symbols of a thriving entrepreneurial society”? The right answer is usually a guess, but hopefully your guess will be more informed now.
The United States consistently ranks first in the number of patent applications filed, due in particular to its strength in the technology, pharmaceutical, and automotive sectors. Major companies such as Apple, IBM, and Microsoft are major contributors to the number of U.S. patent applications.
united states of america is the undisputed leader in global startups. From the tech innovation epicenter of Silicon Valley to New York City and emerging hubs like Austin, Texas, startups across industries are home to talented individuals.
The United States leads the world, especially in entertainment, software, and literary copyright. The dominance of Hollywood, Silicon Valley, and a robust publishing industry make the United States the world leader in copyright.
What is also worth mentioning is how easily the spirit of existing and potential entrepreneurs can be crushed by an authoritarian regime that disrupts existing institutions. This also raises the issue of countries with limited entrepreneurial spirit.
As an advocate for the use of appropriate technology in the classroom, I now have students work in teams to do their own research on global patents, copyrights, entrepreneurship, R&D funding, or any related topic. The teams then share with the class their interesting findings and observations in countries outside the U.S. (Students sit under a map and point out each location each time a student names their country and their unique discovery.)
The final lesson provides an opportunity for student volunteers to distinguish between human capital as the physical and intellectual labor of a worker and the risk-taking and innovative behavior of an entrepreneur, which may spark their interest in future working for a company that is part of the entrepreneurial activity of a growing economy.
Two factors of production have decreased and now land and capital must be brought in. Coming soon!
