IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v60y2023i2d10.1007_s11187-022-00604-x.html
   My bibliography  Save this article

Does the entrepreneurial state crowd out entrepreneurship?

Author

Listed:
  • David B. Audretsch

    (Indiana University)

  • Antje Fiedler

    (University of Auckland)

Abstract

This paper argues that an entrepreneurial state can inadvertently crowd out entrepreneurship. Using the context provided by Singapore, the paper finds that coordinated policies that prioritize and target capital, knowledge, and human capital accumulation in particular industries, sectors, technologies, and firms have created a formidable societal knowledge filter, which in turn can impede endogenous entrepreneurial activity. By serving as the entrepreneur, Singapore’s entrepreneurial state imposes its vision by assuming the core entrepreneurial values and traits of opportunity recognition, discovery, and action. The entrepreneurial state, at least in the case of Singapore, retards the transition to an entrepreneurial society, which, paradoxically, is the vision of Singapore’s entrepreneurial state.

Suggested Citation

  • David B. Audretsch & Antje Fiedler, 2023. "Does the entrepreneurial state crowd out entrepreneurship?," Small Business Economics, Springer, vol. 60(2), pages 573-589, February.
    • Handle: RePEc:kap:sbusec:v:60:y:2023:i:2:d:10.1007_s11187-022-00604-x
    DOI: 10.1007/s11187-022-00604-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-022-00604-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-022-00604-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cumming, Douglas J. & MacIntosh, Jeffrey G., 2006. "Crowding out private equity: Canadian evidence," Journal of Business Venturing, Elsevier, vol. 21(5), pages 569-609, September.
    2. David Audretsch, 2009. "The entrepreneurial society," The Journal of Technology Transfer, Springer, vol. 34(3), pages 245-254, June.
    3. David Audretsch & Marcel Hülsbeck & Erik Lehmann, 2012. "Regional competitiveness, university spillovers, and entrepreneurial activity," Small Business Economics, Springer, vol. 39(3), pages 587-601, October.
    4. Douglas Cumming & Michele Meoli & Silvio Vismara, 2021. "Does equity crowdfunding democratize entrepreneurial finance?," Small Business Economics, Springer, vol. 56(2), pages 533-552, February.
    5. Clement K. Wang & Bee Lian Ang, 2004. "Determinants of Venture Performance in Singapore," Journal of Small Business Management, Taylor & Francis Journals, vol. 42(4), pages 347-363, October.
    6. Friederike Welter, 2011. "Contextualizing Entrepreneurship—Conceptual Challenges and Ways Forward," Entrepreneurship Theory and Practice, , vol. 35(1), pages 165-184, January.
    7. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
    8. Annie Koh & Esther Kong, 2021. "Correction to: Building Growth Enterprises in Singapore: Public-Private Partnership," Springer Books, in: Hsi-Mei Chung & Kevin Au (ed.), Succession and Innovation in Asia’s Small-and-Medium-Sized Enterprises, pages C1-C1, Springer.
    9. Sung-Young Kim, 2012. "Transitioning from fast-follower to innovator: The institutional foundations of the Korean telecommunications sector," Review of International Political Economy, Taylor & Francis Journals, vol. 19(1), pages 140-168.
    10. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    11. David Audretsch, 2014. "From the entrepreneurial university to the university for the entrepreneurial society," The Journal of Technology Transfer, Springer, vol. 39(3), pages 313-321, June.
    12. Damrich, Sebastian & Kealey, Terence & Ricketts, Martin, 2022. "Crowding in and crowding out within a contribution good model of research," Research Policy, Elsevier, vol. 51(1).
    13. Booth, Anne, 1999. "Initial Conditions and Miraculous Growth: Why is South East Asia Different From Taiwan and South Korea?," World Development, Elsevier, vol. 27(2), pages 301-321, February.
    14. Hu, Albert Guangzhou, 2004. "Multinational Corporations, Patenting, and Knowledge Flow: The Case of Singapore," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 781-800, July.
    15. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    16. Bardhan, Pranab, 1990. "Symposium on the State and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 3-7, Summer.
    17. Poh-Kam Wong & Yuen-Ping Ho, 2007. "Knowledge sources of innovation in a small open economy: The case of Singapore," Scientometrics, Springer;Akadémiai Kiadó, vol. 70(2), pages 223-249, February.
    18. Wang, Jue, 2018. "Innovation and government intervention: A comparison of Singapore and Hong Kong," Research Policy, Elsevier, vol. 47(2), pages 399-412.
    19. Ho, Yuen-Ping & Ruan, Yi & Hang, Chang-Chieh & Wong, Poh-Kam, 2016. "Technology upgrading of Small-and-Medium-sized Enterprises (SMEs) through a manpower secondment strategy – A mixed-methods study of Singapore's T-Up program," Technovation, Elsevier, vol. 57, pages 21-29.
    20. Gunnar Eliasson & Magnus Henrekson, 2004. "William J. Baumol: An Entrepreneurial Economist on the Economics of Entrepreneurship," Small Business Economics, Springer, vol. 23(1), pages 1-7, August.
    21. Rajeev K. Goel, 2018. "Foreign direct investment and entrepreneurship: gender differences across international economic freedom and taxation," Small Business Economics, Springer, vol. 50(4), pages 887-897, April.
    22. Annie Koh & Esther Kong, 2021. "Building Growth Enterprises in Singapore: Public-Private Partnership," Springer Books, in: Hsi-Mei Chung & Kevin Au (ed.), Succession and Innovation in Asia’s Small-and-Medium-Sized Enterprises, chapter 0, pages 201-242, Springer.
    23. Linda Low, 2005. "Entrepreneurship Development in Ireland and Singapore," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 10(1), pages 116-138.
    24. Alexander Ebner, 2009. "Entrepreneurial state: The schumpeterian theory of industrial policy and the East Asian “Miracle”," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 369-390, Springer.
    25. Rosalie Hooi & Jue Wang, 2020. "Research funding and academic engagement: a Singapore case," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 18(2), pages 162-174, April.
    26. Alexius Pereira, 2008. "Whither the Developmental State? Explaining Singapore's continued Developmentalism," Third World Quarterly, Taylor & Francis Journals, vol. 29(6), pages 1189-1203.
    27. Tony F. Yu, 1997. "Entrepreneurial State: The Role of Government in the Economic Development of the Asian Newly Industrialising Economies," Development Policy Review, Overseas Development Institute, vol. 15(1), pages 47-64, March.
    28. Pontus Braunerhjelm & Zoltán J. Ács & David B. Audretsch & Bo Carlsson, 2015. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 6, pages 108-128, Edward Elgar Publishing.
    29. Kohli, Atul, 1994. "Where do high growth political economies come from? The Japanese lineage of Korea's "developmental state"," World Development, Elsevier, vol. 22(9), pages 1269-1293, September.
    30. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    31. Garry D. Bruton & David Ahlstrom & Kulwant Singh, 2002. "The impact of the institutional environment on the venture capital industry in Singapore," Venture Capital, Taylor & Francis Journals, vol. 4(3), pages 197-218, July.
    32. John Mathews & Mei-Chih Hu & Ching-Yan Wu, 2011. "Fast-Follower Industrial Dynamics: The Case of Taiwan's Emergent Solar Photovoltaic Industry," Industry and Innovation, Taylor & Francis Journals, vol. 18(2), pages 177-202.
    33. Cornelia Kolb & Marcus Wagner, 2015. "Crowding in or crowding out: the link between academic entrepreneurship and entrepreneurial traits," The Journal of Technology Transfer, Springer, vol. 40(3), pages 387-408, June.
    34. John A. Mathews, 2017. "Dragon multinationals powered by linkage, leverage and learning: A review and development," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 769-775, December.
    35. David B. Audretsch, 2021. "Have we oversold the Silicon Valley model of entrepreneurship?," Small Business Economics, Springer, vol. 56(2), pages 849-856, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Špetlík Václav & Čadil Jan, 2023. "When Daces Bite Deeper than Sharks – Does the SMEs Public Subsidy Dose Matter?," Review of Economic Perspectives, Sciendo, vol. 23(4), pages 233-250, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    2. Andrew Burke & Serhiy Lyalkov & Ana Millán & José María Millán & André Stel, 2021. "How do country R&D change the allocation of self-employment across different types?," Small Business Economics, Springer, vol. 56(2), pages 695-721, February.
    3. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    4. Niels Bosma & Jeroen Content & Mark Sanders & Erik Stam, 2018. "Institutions, entrepreneurship, and economic growth in Europe," Small Business Economics, Springer, vol. 51(2), pages 483-499, August.
    5. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    6. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    7. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    8. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    9. Raquel Ortega-Argilés, 2022. "The evolution of regional entrepreneurship policies: “no one size fits all”," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 585-610, December.
    10. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    11. Aparicio, Sebastian & Audretsch, David & Noguera, Maria & Urbano, David, 2022. "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    12. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    13. Boris Urban & Zethu Dlamini, 2020. "Intersections between policy and institutions: a focus on enterprise growth in Swaziland," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 9(3), pages 253-275, April.
    14. Michael Wyrwich & Michael Stuetzer & Rolf Sternberg, 2016. "Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions," Small Business Economics, Springer, vol. 46(3), pages 467-492, March.
    15. Joern Block & Roy Thurik & Haibo Zhou, 2013. "What turns knowledge into innovative products? The role of entrepreneurship and knowledge spillovers," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 693-718, September.
    16. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
    17. Pontus Braunerhjelm & Magnus Henrekson, 2013. "Entrepreneurship, institutions, and economic dynamism: lessons from a comparison of the United States and Sweden," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 107-130, February.
    18. Crenguta Ileana SINISI, 2021. "Management of Technology Transfer in Organization Using OpenMes Software," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 195-201.
    19. Sá, Elisabete S. & Pinho, José Carlos M.R. de, 2019. "Effect of entrepreneurial framework conditions on R&D transfer to new and growing firms: The case of European Union innovation-driven countries," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 47-58.
    20. Alessandra Colombelli & Jackie Krafft & Marco Vivarelli, 2016. "Entrepreneurship and Innovation: New Entries, Survival, Growth," GREDEG Working Papers 2016-04, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:60:y:2023:i:2:d:10.1007_s11187-022-00604-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.