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Institutional Entrepreneurship: An Introduction

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  • Henrekson, Magnus

    ()
    (Research Institute of Industrial Economics (IFN))

  • Sanandaji, Tino

    ()
    (Research Institute of Industrial Economics (IFN))

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.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 853.

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Length: 28 pages
Date of creation: 07 Oct 2010
Date of revision:
Publication status: Published in Institutional Entrepreneurship, Henrekson, Magnus, Sanandaji, Tino (eds.), 2012, pages xi-xxvii, Edward Elgar.
Handle: RePEc:hhs:iuiwop:0853

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research

Keywords: Entrepreneurship; Innovation; Institutions; Property rights; Regulation; Self-employment;

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Cited by:
  1. Pier Angelo Toninelli & Michelangelo Vasta, 2011. "Opening the black box of Entrepreneurship: the Italian case in a historical perspective," Department of Economics University of Siena 628, Department of Economics, University of Siena.
  2. Henrekson, Magnus, 2014. "Entrepreneurship, Innovation and Human Flourishing," Working Paper Series 999, Research Institute of Industrial Economics, revised 15 Jan 2014.

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