Entrepreneurial Innovations, Entrepreneurship Policy and Globalization

57 Pages Posted: 29 Mar 2010

See all articles by Robin Douhan

Robin Douhan

Research Institute of Industrial Economics (IFN); Uppsala University

Pehr-Johan Norbäck

Research Institute of Industrial Economics (IFN)

Lars Persson

Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: March 2010

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

JEL Classification: D73, F15, L26, L51, O31

Suggested Citation

Douhan, Robin and Norbäck, Pehr-Johan and Persson, Lars, Entrepreneurial Innovations, Entrepreneurship Policy and Globalization (March 2010). CEPR Discussion Paper No. DP7752, Available at SSRN: https://ssrn.com/abstract=1578102

Robin Douhan

Research Institute of Industrial Economics (IFN)

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
+46(0)86654521 (Phone)

Uppsala University

Box 513
Uppsala, 751 20
Sweden
+46(0)184711590 (Phone)

Pehr-Johan Norbäck

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lars Persson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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