Papers by Magnus Henrekson
Social Science Research Network, 2005
Entrepreneurship is largely ignored, or treated in a highly simplified way, in endogenous growth ... more Entrepreneurship is largely ignored, or treated in a highly simplified way, in endogenous growth theory. Still, it is now widely recognized that the supply of entrepreneurial talent is likely to be important for economic growth, innovation, and job creation. In this study we provide an indepth examination of how the supply of productive entrepreneurship is likely to be affected by the kind of tax and welfare arrangements that may prevail in a mature welfare state. Sweden, allegedly the most extensive of all welfare states, is the object of the empirical analysis. It is argued that the Swedish welfare state early on chose a specific "Swedish Model" of trying to combine ambitious welfare programs and a high tax burden with good opportunities for economic growth. This particular view rested heavily on the assumption that innovative activity was best performed in large established firms and that entry of new firms was less important. Consequently, policy and institutions were geared to promoting certain types of activities, which could deliver growth if scale economies are important and intrapreneurship can substitute for entrepreneurship. However, in an environment where entry, exit and turnover of firms are important for growth, and where scale-economies are less important, this kind of model may be more problematic. Both aggregate economic performance and data on firm growth and direct measures of entrepreneurial activity are broadly consistent with the identified structure of payoffs. A number of measures that can be implemented to strengthen entrepreneurial incentives within extensive welfare states are discussed, but the fact still remains that an entrepreneurial culture and a welfare state seem very remotely related. As a result, the respective cultures are unlikely to be promoted by a similar set of institutions.
International studies in entrepreneurship, 2024
International studies in entrepreneurship, 2024
The notion that society should be organized around large so-called missions has gained momentum i... more The notion that society should be organized around large so-called missions has gained momentum in public debate, and the reemergence of active industrial policy across the world has been inspired by academic scholars promoting the idea of mission-oriented innovation policies (MOIPs). Besides this introductory chapter, this collective volume consists of 16 chapters distributed across 3 overarching themes: theoretical perspectives, empirical evidence, and alternative paths. The volume provides a comprehensive assessment and normative critique of the efficacy of such policies. In addition to summing up the main findings in the 16 chapters, this introduction provides some additional analysis, pins down the most important general conclusions, and suggests future research questions. Today's economies are highly dependent on a well-functioning process of decentralized experimentation, selection, and screening. Instead of large-scale MOIPs, governments should strive to create an institutional framework that levels the playing field for potential entrepreneurs while encouraging productive entrepreneurship. JEL Codes H50 • L26 • L52 • O31 • O38 • P16 We are grateful for useful comments and suggestions from David Lucas and Kathy Saranpa. Financial support from the Jan Wallander and Tom Hedelius Foundation (P2018-0162 and P2023-0186), the Kamprad Family Foundation for Entrepreneurship, Research & Charity (P20220048), the Marianne and Marcus Wallenberg Foundation (2020.0049), and the Knowledge Foundation is gratefully acknowledged.
Small Business Economics, Sep 28, 2023
Labour Economics, Jun 1, 2005
The Review of Austrian Economics, May 23, 2019
European Economic Review, Aug 1, 2001
Social Science Research Network, 2007
In this introductory chapter to a collective volume dealing with the political economy of entrepr... more In this introductory chapter to a collective volume dealing with the political economy of entrepreneurship, * we argue, based on a suggested unifying framework, that political economy is a fruitful approach to entrepreneurship. The importance of institutions in structuring such an analysis is also emphasized. The introduction also introduces the selected articles and puts them in context. Vital functions of the capitalist economy are ascribed to the productive entrepreneur, but the selected articles also show that the social value of entrepreneurship must be evaluated as it is realized. Three facets of entrepreneurship are claimed to be of particular importance from a political economy perspective: (i) Entrepreneurship is dynamic in the sense that it adapts to the politically determined institutional framework within which it acts. Under propitious circumstances, it can be a powerful engine of growth, but it can also be channelled in unproductive and destructive directions. (ii) Entrepreneurship enters directly into the political system. The close connection to property rights constitutes a link between entrepreneurship and private versus public ownership and redistribution. Under unfavourable institutional circumstances, rent-seeking and predatory entrepreneurship, via the political system, offer greater profit opportunities than the market. (iii) A political economy approach is necessary in order to understand how the political system shapes the institutional setup. Here, it is emphasized that the distribution of political power is partly determined by economic wealth. Hence, it is relevant to broaden the analysis to the effects on wealth creation and wealth redistribution stemming from entrepreneurial activity.
RePEc: Research Papers in Economics, Jun 1, 1997
Social Science Research Network, Jul 6, 2007
Social Science Research Network, Jul 6, 2007
RePEc: Research Papers in Economics, Aug 26, 2008
Comparative Labor Law and Policy Journal, 2007
Social Science Research Network, Jul 3, 2019
Economic growth requires factor reallocation across firms and continuous replacement of technolog... more Economic growth requires factor reallocation across firms and continuous replacement of technologies. Labor market institutions influence economic dynamism by their impact on the supply of a key factor, skilled workers to new and expanding firms, and the shedding of workers from declining and failing firms. Growth-favoring labor market institutions include portable pension plans and other job tenure rights, health insurance untied to the current employer, individualized wage-setting, and public income insurance systems that encourage mobility and risk-taking in the labor market.
Social Science Research Network, Sep 17, 2019
History of Economic Ideas, 2011
International studies in entrepreneurship, 2019
International studies in entrepreneurship, 2019
Entrepreneurship Theory and Practice
Based on a review of 700+ peer-reviewed articles since 1990, identified using text mining methodo... more Based on a review of 700+ peer-reviewed articles since 1990, identified using text mining methodology and supervised machine learning, we analyze how neo-Schumpeterian growth theorists relate to the entrepreneur-centered view of Schumpeter Mark I and the entrepreneurless framework of Schumpeter Mark II. The literature leans heavily toward Schumpeter Mark II; innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are (probabilistically) deterministic, the entrepreneur becomes redundant. ing from genuine uncertainty, implies that central issues regarding the economic function of the entrepreneur are overlooked such as the roles of proprietary resources, skills, and profits.
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Papers by Magnus Henrekson