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)
115 Pages Posted: 28 Jan 2017 Last revised: 17 Feb 2017
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: Suggested Citation