Institutional Reform for Innovation and Entrepreneurship: An Agenda for Europe

Forthcoming, "Institutional Reform for Enhanced Innovation and Entrepreneurship: An Agenda for Europe in the SpringerBriefs" in Economics series (New York: Springer)

IFN Working Paper No. 1150

115 Pages Posted: 28 Jan 2017 Last revised: 17 Feb 2017

See all articles by Niklas Elert

Niklas Elert

HFI, Institute of Retail Economics

Magnus Henrekson

Research Institute of Industrial Economics (IFN)

Mikael Stenkula

Research Institute of Industrial Economics (IFN)

Date Written: January 26, 2017

Abstract

It is imperative that the economies of the European Union become more entrepreneurial to promote innovation and economic growth. To achieve these goals, we propose a reform strategy with respect to (i) the rule of law and the protection of property rights; (ii) the tax system; (iii) regulations governing savings, capital and finance; (iv) the organization of labor markets and social insurance systems; (v) regulations governing goods and service markets; (vi) regulations governing bankruptcy and insolvency; (vii) R&D, commercialization and knowledge spillovers; (viii) human capital investments; and (ix) informal institutions. Overall, the proposed institutional changes move in a liberalizing direction; however, one-size-fits-all policy reforms aimed at freer markets will not necessarily be successful. Instead, a successful reform strategy must consider country differences that affect the viability of reform without abandoning the long-term goal of institutional liberalization to promote entrepreneurship, innovation and growth.

Keywords: Entrepreneurship, European Union, Innovation, Institutions, Policy reform, Regulation, Self-employment, Varieties of capitalism

JEL Classification: L26, L5, M13, O31, P14

Suggested Citation

Elert, Niklas and Henrekson, Magnus and Stenkula, Mikael, Institutional Reform for Innovation and Entrepreneurship: An Agenda for Europe (January 26, 2017). Forthcoming, "Institutional Reform for Enhanced Innovation and Entrepreneurship: An Agenda for Europe in the SpringerBriefs" in Economics series (New York: Springer), IFN Working Paper No. 1150, Available at SSRN: https://ssrn.com/abstract=2906233

Niklas Elert

HFI, Institute of Retail Economics ( email )

Regeringsgatan
Stockholm
Sweden

Magnus Henrekson (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Grevgatan 34
Stockholm, SE-10215
Sweden
+46-8-6654502 (Phone)
+46-8-6654599 (Fax)

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

Mikael Stenkula

Research Institute of Industrial Economics (IFN) ( email )

P.O. Box 55665
Stockholm, 102 15
Sweden

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