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Entrepreneurial Innovations, Entrepreneurship Policy and Globalization

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  • Douhan, Robin
  • Norbäck, Pehr-Johan
  • Persson, Lars

Abstract

What explains the world-wide trend of pro-entrepreneurial policies? We study entrepreneurial policy in a lobbying model taking into account the conflict of interest between entrepreneurs and incumbents. It is shown that international market integration leads to more pro-entrepreneurial policies. It is then more difficult to protect the profits of incumbents from entrepreneurial entry and pro-entrepreneurial policies make foreign entrepreneurs less aggressive. Using the World Bank Doing Business database, we find evidence that international openness reduces barriers to entry for new entrepreneurs and that the effect is stronger in countries with more rent-seeking governments.

Suggested Citation

  • Douhan, Robin & Norbäck, Pehr-Johan & Persson, Lars, 2010. "Entrepreneurial Innovations, Entrepreneurship Policy and Globalization," CEPR Discussion Papers 7752, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:7752
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    References listed on IDEAS

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    Cited by:

    1. Norbäck, Pehr-Johan & Persson, Lars & Douhan, Robin, 2014. "Entrepreneurship policy and globalization," Journal of Development Economics, Elsevier, vol. 110(C), pages 22-38.

    More about this item

    Keywords

    Entrepreneurship; Innovation; Lobbying; Market Integration; Regulation;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F15 - International Economics - - Trade - - - Economic Integration
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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