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Entrepreneurship, Institutions and Economic Dynamism: Lessons from a Comparison of the United States and Sweden

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  • Braunerhjelm, Pontus

    ()
    (Swedish Entrepreneurship Forum)

  • Henrekson, Magnus

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

Abstract

The purpose of this research endeavor—in the form of eight articles—to be published in 2013 in a Special Section of Industrial and Corporate Change is to further our understanding of the extent, character and orientation of entrepreneurial activity in today’s wealthy countries. This is done by means of detailed studies of particular aspects of the rules of the game deemed to be of particular importance for entrepreneurship, innovation-based firm growth and its ensuing impact on the economy. Particular aspects of entrepreneurship and economic dynamism are covered by pairs (or in one case three) coauthors, who are renowned specialists in the area and with deep knowledge of the pertinent institutions in Sweden and the US. These two countries have been argued to be located at either end of the spectrum of the types of capitalism with respect to the degree coordination and government intervention. This introductory essay sets off by giving a short overview of the institutional differences that distinguish these economies, but also stresses that convergence has occurred in the last decades in several respects. Still, as is obvious from the summary of the eight comparative analyses included in the Special Section, considerable differences remain. These constitute the basis for the concluding policy discussion.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 943.

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Length: 28 pages
Date of creation: 23 Nov 2012
Date of revision:
Publication status: Published as Braunerhjelm, Pontus and Magnus Henrekson, 'Entrepreneurship, Institutions and Economic Dynamism: Lessons from a Comparison of the United States and Sweden' in Industrial and Corporate Change, 2013, pages 107-130.
Handle: RePEc:hhs:iuiwop:0943

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Keywords: Entrepreneurship; Innovation; Institutions; Firm growth; Economic dynamism;

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References

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  1. Easterly, William, 2001. " The Lost Decades: Developing Countries' Stagnation in Spite of Policy Reform 1980-1998," Journal of Economic Growth, Springer, vol. 6(2), pages 135-57, June.
  2. Edmark, Karin & Gordon, Roger, 2013. "Taxes and the Choice of Organizational Form by Entrepreneurs in Sweden," Working Paper Series, Center for Fiscal Studies 2013:13, Uppsala University, Department of Economics.
  3. Edmund S. Phelps, 2007. "Macroeconomics for a Modern Economy," American Economic Review, American Economic Association, vol. 97(3), pages 543-561, June.
  4. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "Introduction to "The Welfare State in Transition: Reforming the Swedish Model"," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 1-32 National Bureau of Economic Research, Inc.
  5. Pontus Braunerhjelm & Roger Svensson, 2010. "The inventor’s role: was Schumpeter right?," Journal of Evolutionary Economics, Springer, vol. 20(3), pages 413-444, June.
  6. Asoni, Andrea & Sanandaji, Tino, 2009. "Taxation and the Quality of Entrepreneurship," Working Paper Series 813, Research Institute of Industrial Economics, revised 30 Oct 2013.
  7. Henrekson, Magnus & Johansson, Dan, 2008. "Competencies and Institutions Fostering High-growth Firms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(1), pages 1-80, November.
  8. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
  9. Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
  10. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
  11. Per-Anders Edin & Robert Topel, 1997. "Wage Policy and Restructuring: The Swedish Labor Market since 1960," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 155-202 National Bureau of Economic Research, Inc.
  12. Moretti, Enrico & Thulin, Per, 2012. "Local Multipliers and Human Capital in the US and Sweden," Working Paper Series 914, Research Institute of Industrial Economics.
  13. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2012. "Can't We All Be More Like Scandinavians? Asymmetric Growth and Institutions in an Interdependent World," NBER Working Papers 18441, National Bureau of Economic Research, Inc.
  14. Bergh, Andreas, 2011. "The Rise, Fall and Revival of a Capitalist Welfare State: What are the Policy Lessons from Sweden," Working Paper Series 873, Research Institute of Industrial Economics.
  15. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "The Welfare State in Transition: Reforming the Swedish Model," NBER Books, National Bureau of Economic Research, Inc, number free97-1, July.
  16. Dan Johansson, 2010. "The theory of the experimentally organized economy and competence blocs: an introduction," Journal of Evolutionary Economics, Springer, vol. 20(2), pages 185-201, April.
  17. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
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Cited by:
  1. 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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