Improved Framework Conditions for a More Entrepreneurial, Innovative and Resilient EU

Niklas Elert () and Magnus Henrekson ()

No 1384, Working Paper Series from Research Institute of Industrial Economics

Abstract: In the wake of the Covid-19 crisis, the European Union must regain lost ground and create more favorable conditions for inclusive and sustainable economic growth. The best way to achieve this goal is by increasing the Union’s innovativeness. This effort requires extensive and broad-based institutional reforms aimed at strengthening the incentives for entrepreneurship. Innovative entrepreneurship requires collaborations with numerous agents that provide those skills and resources that the entrepreneur is lacking: inventors, key personnel, demanding customers, and early and later-stage financiers. Based on this ecosystem perspective, we propose reforms in the following six broad areas: (i) the rule of law and property rights, ii) taxation, iii) savings and finance, iv) labor market regulations and social security, v) entry and exit barriers in product markets, and (vi) human capital for entrepreneurship. The reforms would likely strengthen Europe’s innovation capacity at a time when it is needed more than ever.

Keywords: Entrepreneurship; European Union; Innovation; Institutions; Policy reform; Regulation; Self-employment (search for similar items in EconPapers)
JEL-codes: L26 L50 M13 O38 O52 P14 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2021-03-25, Revised 2021-10-23
New Economics Papers: this item is included in nep-ent, nep-ino and nep-tid
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