Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87015
Authors: 
Audretsch, D.B.
Thurik, A.R.
Year of Publication: 
2010
Series/Report no.: 
Tinbergen Institute Discussion Paper 10-080/3
Abstract: 
A recent literature has emerged providing compelling evidence that a major shift in the organization of the developed economies has been taking place: away from what has been characterized as the managed economy towards the entrepreneurial economy. In particular, the empirical evidence provides consistent support that (1) the role of entrepreneurship has significantly increased, and (2) a positive relationship exists between entrepreneurial activity and economic performance. However, the factors underlying this observed shift have not been identified in a systematic manner. The purpose of this paper is to suggest some of the factors leading to this shift and implications for public policy. In particular, we find that a fundamental catalyst underlying the shift from the managed to the entrepreneurial economy involved the role of technological change. However, we also find that it was not just technological change but rather involved a number of supporting factors, ranging from the demise of the communist system, increased globalization, new competition for multinational firms and higher levels of prosperity. Recognition of the causes of the shift from the managed to the entrepreneurial economy suggests a rethinking of the public policy approach. Rather than the focus of directly and exclusively on promoting startups and SMEs, it may be that the current approach to entrepreneurship policy is misguided. The priority should not be on entrepreneurship policy but rather a more pervasive and encompassing approach, policy consistent with an entrepreneurial economy.
Subjects: 
entrepreneurship
economic regime switch
economic policy
new firms and startups
economic development
firm performance and market structure
globalization
new technologies
JEL: 
E10
E60
H11
L1
L2
M13
O10
Document Type: 
Working Paper

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