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Institutional Entrepreneurship: An Introduction

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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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  • Henrekson, Magnus & Sanandaji, Tino, 2010. "Institutional Entrepreneurship: An Introduction," Working Paper Series 853, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0853
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    1. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    2. H. Aswicahyono & H. Hill, 2002. "'Perspiration' vs 'Inspiration' in Asian Industrialisation: Indonesia Before the Crisis," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 138-163.
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    Cited by:

    1. Pier Angelo Toninelli & Michelangelo Vasta, 2014. "Opening the black box of entrepreneurship: The Italian case in a historical perspective," Business History, Taylor & Francis Journals, vol. 56(2), pages 161-186, March.
    2. DOMBOU T., Dany R., 2017. "Liberté économique et entrepreneuriat en ASS : une approche par le genre
      [Economic freedom and entrepreneurship in SSA: a gender approach]
      ," MPRA Paper 80242, University Library of Munich, Germany.
    3. repec:mje:mjejnl:v:11:y:2015:i:1:p:69-84 is not listed on IDEAS
    4. Magnus Henrekson, 2014. "Entrepreneurship, innovation, and human flourishing," Small Business Economics, Springer, pages 511-528.

    More about this item

    Keywords

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

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights

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