Institutional Entrepreneurship: An Introduction

INSTITUTIONAL ENTREPRENEURSHIP, Magnus Henrekson and Tino Sanandaji, eds., Edward Elgar, Forthcoming

IFN Working Paper No. 853

29 Pages Posted: 8 Oct 2010

See all articles by Magnus Henrekson

Magnus Henrekson

Research Institute of Industrial Economics (IFN)

Tino Sanandaji

Research Institute of Industrial Economics (IFN)

Date Written: October 7, 2010

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.

Keywords: Entrepreneurship, Innovation, Institutions, Property Rights, Regulation. Self-Employment

JEL Classification: H32, L5, M13, O31, P14

Suggested Citation

Henrekson, Magnus and Sanandaji, Tino, Institutional Entrepreneurship: An Introduction (October 7, 2010). INSTITUTIONAL ENTREPRENEURSHIP, Magnus Henrekson and Tino Sanandaji, eds., Edward Elgar, Forthcoming, IFN Working Paper No. 853, Available at SSRN: https://ssrn.com/abstract=1689034

Magnus Henrekson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
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Stockholm, SE-10215
Sweden
+46-8-6654502 (Phone)
+46-8-6654599 (Fax)

HOME PAGE: http://www.ifn.se/mh

Tino Sanandaji

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
0723230694 (Phone)

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