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Entrepreneurial Innovations, Entrepreneurship Policy and Globalization

Robin Douhan (), Pehr-Johan Norbäck () and Lars Persson

No 7752, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Entrepreneurship; Innovation; Lobbying; Market Integration; Regulation (search for similar items in EconPapers)
JEL-codes: D73 F15 L26 L51 O31 (search for similar items in EconPapers)
Date: 2010-03
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Working Paper: Entrepreneurial Innovations, Entrepreneurship Policy and Globalization (2013) Downloads
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