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Richard Cantillon (1680-1734) was the first of the major economic thinkers to define the entrepreneur as an agent who buys means of production at certain prices to combine them into a new product. He classified economic agents into landowners, hirelings, and entrepreneurs, and considered the entrepreneur as the most active among these three agents, connecting the producers with customers. Jean Baptise Say (1767-1832) improved Cantillions definition by adding that the entrepreneur brings people together to build a productive item.
finds new way of making things or organization Schumpeters innovation theory however ignores the entrepreneurs risk taking ability and organizational skills, and place undue importance on innovation. This theory applies to large-scale businesses, but economic conditions force small entrepreneurs to imitate rather than innovate. Other economists have added a dimension to imitating and adapting to innovation. This entails successful imitation by adapting a product to a niche in a better way than the original product innovators innovation
O-Ring Theory of Economic Development Is a model of economic development put forward by Michael Kremer, which proposes that tasks of production must be executed proficiently together in order for any of them to be of high value. The key feature of this model is positive assortative matching, whereby people with similar skill levels work together. There are five major assumptions of this model: firms are risk-neutral, labor markets are competitive, workers supply labor in elastically, workers are imperfect substitutes for one another, and there is a sufficient complementarity of tasks. This model helps to explain brain drain and international economic disparity. As Kremer puts it, "If strategic complementarity is sufficiently strong, micro-economically identical nations or groups within nations could settle into equilibrium with different levels of human capital"