Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity

Entrepreneurship, economic development and institutions

“…In other words, in the efficiency-driven stage, entrepreneurial activity is mildly increasing or relatively flat as necessity entrepreneurship is steadily reduced and innovation comes from the outside, since developing countries . The role of foreign direct investment becomes critical in creating efficiency in the efficiency-driven stage and knowledge spillovers to move a country to the technological frontier, which is synonymous with the innovation-driven economy (Baumol et al 2006). …”

Unravelling the nexus between entrepreneurship, neighbourhoods and communities – introduction

“…Entrepreneurship is commonly believed to increase not only the economic strength and innovation of countries, regions and cities, but also of neighbourhoods and communities (OECD, 2003;Baumol et al, 2007). This volume will focus particularly on community enterprises; organisations which are set up and operated by local residents, aiming to invest in their neighbourhood and create benefits through entrepreneurial activities.…”

“…Many European countries have witnessed decades of urban regeneration policies, which have often been unsuccessful in both economic and social terms, often breaking up and dispersing tightly knit neighbourhoods, and failing to strengthen local opportunities for employment or decrease levels of social isolation. Policymakers across Europe have turned to fostering entrepreneurship in deprived neighbourhoods and communities, for example as a means to bring young people out of unemployment back into work (OECD, 2003;Welter et al, 2008), especially since the great economic crisis of 2007(Fairlie, 2013. Entrepreneurship is considered a key element in enhancing local economic development through job creation and increased productivity, as well as ensuring greater social inclusion (Williams and Huggins, 2013, 166; see also Blackburn and Ram, 2006;Syrett and North, 2008).…”

Local Competitiveness Fostered through Local Institutions for Entrepreneurship

“…Important areas not discussed include the functioning of capital markets, systems for targeted support and bankruptcy law. For a more comprehensive discussion the reader is referred to Baumol et al (2007), Henrekson and Stenkula (2010) and the various contributions in Audretsch, Grilo and Thurik (2007).…”

“…Public policy can alter social attitudes over time. To the extent that norms and attitudes are culturally codified products of the reward structures in society, institutional changes are likely to affect norms and attitudes (Bowles 1998, Baumol et al 2007Smith 2003). But such processes may take many years, even decades, to complete.…”