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This paper examines the different theories that have been developed in economics and innovation management to explain the causal chain of events through which entrepreneurs can deliver more innovation and ultimately higher growth for the benefits of the regional and national economies and identifies the key firm-based factors that lead to survival and long term development of high technology firms. It determines the extent of the entrepreneurial activities and possible factors that constrain or assist the growth process of these firms. It then draws upon the key predictions of the core theories of entrepreneurship and innovation to formulate a model for measuring the characteristics of entrepreneurial hi-tech firms, characteristics of innovating firms, and innovation and firm growth dynamics. The model is developed to explain these key building blocks that might lead to enhanced prior economic growth and the patterns and dynamics observed in a developing country context.