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Taxation, Labor Market Policy and High-Impact Entrepreneurship

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  • Magnus Henrekson

    ()

  • Dan Johansson

    ()

  • Mikael Stenkula

    ()

Abstract

Public policy affects the prevalence and performance of both productive and high-impact entrepreneurship. High-impact entrepreneurship prospers when knowledge is successfully generated and exploited in the economy. This process depends on complementary key ac-tors who use their competencies in what we denote a competence bloc. Although variations in economic contexts make prescribing a general panacea impossible, a number of relevant policy areas that affect key actors can be identified. In this paper this is done in the areas of tax policy and labor market policy. It is shown that high and/or distortive taxes and heavy labor market regulations impinge on the creation and functioning of competence blocs, thereby reducing high-impact entrepreneurship.

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Bibliographic Info

Article provided by Springer in its journal Journal of Industry, Competition and Trade.

Volume (Year): 10 (2010)
Issue (Month): 3 (September)
Pages: 275-296

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Handle: RePEc:kap:jincot:v:10:y:2010:i:3:p:275-296

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Web page: http://springerlink.metapress.com/link.asp?id=105724

Related research

Keywords: entrepreneurship; gazelles; high-growth firms; high-impact entrepreneurship; innovation; institutions; labor market policy; tax policy; H32; L5; L25; M13; O31; P14;

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Cited by:
  1. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
  2. Stenkula, Mikael, 2009. "Taxation and Entrepreneurship in a Welfare State," Working Paper Series 800, Research Institute of Industrial Economics.
  3. Josh Lerner & Joacim T�g, 2013. "Institutions and venture capital," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 153-182, February.
  4. Neil Lee, 2014. "What holds back high-growth firms? Evidence from UK SMEs," Small Business Economics, Springer, vol. 43(1), pages 183-195, June.

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