Schumpeterian Entrepreneurship: Coveted by Policymakers but Impervious to Top-Down Policymaking

Magnus Henrekson (), Anders Kärnä and Tino Sanandaji ()
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Tino Sanandaji: Institute for Economic and Business History Research, Postal: Stockholm School of Economics

No 1395, Working Paper Series from Research Institute of Industrial Economics

Abstract: Differentiating various types of entrepreneurs provides clues to the puzzle of why top-down policies often fail to create Schumpeterian entrepreneurship and the ecosystems where it thrives. Schumpeterian entrepreneurship is intrinsically contrarian, whereas public policy has a bias toward incremental innovation and replication of past success. If central planners knew what the next radical innovation would be, there would be no need for Schumpeterian entrepreneurs. Schumpeterian entrepreneurs create not only companies but also institutions in the entrepreneurial support system. These ever-evolving structures are too complex to design, and central planning instead reduces the space for organic institutional innovation.

Keywords: Entrepreneurship policy; High-impact entrepreneurship; Innovation; Institutions; Schumpeterian entrepreneurship (search for similar items in EconPapers)
JEL-codes: M13 O31 P14 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2021-06-24, Revised 2022-01-31
New Economics Papers: this item is included in nep-ent, nep-hme, nep-ino and nep-sbm
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Journal Article: Schumpeterian entrepreneurship: coveted by policymakers but impervious to top-down policymaking (2022)
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