Entrepreneurs in order to make profit convert resources in a way to increase their value. An economy benefits from their innovation as the advancements in technology can expand the economy's production possibilities. The entrepreneurial discovery and development of improved products and production processes is a central element of economic progress.
Simply put, the economy often needs new people to come along to invent new products and make improvements on existing technology because often firms who have been in an industry for a while don't have as much incentive to discover new technologies as someone who is starting from scratch. This is also why free entry is an important economic concept.
