Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81413
Authors: 
Henrekson, Magnus
Sanandaji, Tino
Year of Publication: 
2010
Series/Report no.: 
IFN Working Paper 853
Abstract: 
In this introductory chapter to a collective volume,* we build on Baumol’s (1990) framework to categorize, catalog, and classify the budding research field that explores the interplay between institutions and entrepreneurship. Institutions channel entrepreneurial supply into productive or unproductive activities, which likely accounts for a great deal of the disparate economic development of nations. What’s more, entrepreneurship is not only influenced by institutions—entrepreneurs often shape institutions themselves. Entrepreneurship abiding by existing institutions is occasionally disruptive enough to challenge the foundations of prevailing institutions. Entrepreneurs also have the opportunity to evade institutions, which tends to undermine the effectiveness of the institutions in question, or cause them to change for the better. Lastly, entrepreneurs can directly alter institutions through innovative political entrepreneurship. Similar to business entrepreneurship, innovative political activity can be either productive or unproductive, depending on the entrepreneurs’ incentives.
Subjects: 
Entrepreneurship
Innovation
Institutions
Property rights
Regulation
Self-employment
JEL: 
H32
L50
M13
O31
P14
Document Type: 
Working Paper

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