Productive and Destructive Entrepreneurship in a Political Economy Framework

Arbeitspapier

Recent research has highlighted the role of institutions in channeling entrepreneurs into activities with positive or negative effects on overall productivity. Embedding central elements from these theories into a political economy framework reveals the bilateral causal relation between entrepreneurs and institutions. Core features of the entrepreneur force us to view its effects on institutions as more than mechanic general equilibrium adjustments. Three analytically separate channels of influence are isolated, analyzed and exemplified. Entrepreneurs influence formal economic institutions through direct involvement in politics, by using their entrepreneurial talent to wield de facto political power and by altering the effect of formal institutions. We propose a parsimonious framework that incorporates these effects as well as the role of institutions in channeling entrepreneurial talent. We use examples from modern history as a real-world context to illustrate our framework.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 761

Classification and Topics

• Classification: Wirtschaft ; Regulation and Industrial Policy: General ; New Firms; Startups ; Innovation and Invention: Processes and Incentives ; Capitalist Systems: Property Rights
• Subject: Entrepreneurship ; Innovation ; Institutions ; Regulation ; Self-employment ; Entrepreneurship-Ansatz ; Innovation ; Institutionelle Infrastruktur ; Regulierung ; Eigentumsrecht ; Wirtschaftstheorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Douhan, Robin ; Henrekson, Magnus
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/81312
• Last update: 10.03.2025, 11:42 AM CET