Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279106 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16408
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We review Baumol's typology of productive, unproductive and destructive entrepreneurship. We argue that the typology is relevant for explaining the secular decline in business dynamics. To the existing explanations for this decline, we put forward the thesis that entrepreneurship has become less productive, due to the unintended effects of entrepreneurship policies adopted widely in Western economies. These have straight-jacketed, distracted and zombified entrepreneurship. Removing these constraints on productive entrepreneurship would require that the decline in level-two institutions, such as democracy and science, be halted and reversed.
Subjects: 
entrepreneurship
economic growth
economic development
institutions
Baumol
JEL: 
L26
L21
L53
O40
Document Type: 
Working Paper

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