Foundations and Trends (R) in Entrepreneurship
2 total works
Competencies and Institutions Fostering High-growth Firms
by Magnus Henrekson and Dan Johansson
Published 28 November 2008
Competencies and Institutions Fostering High-Growth Firms examines high-growth firms, also known as ""Gazelles"", which have become critical to net job creation and economic growth. It analyzes how the institutional framework - the ""rules of the game"" - affects such firms, taking the theory of competence blocs as a point of departure.
The three institutional categories that are key areas for the promotion of high growth firms include the tax system, the organization oflabour markets and product market regulations. The authors characterize institutions as either fostering dynamic capitalism, by providing a favourable environment for the emergence of competence blocs and the generation of high growth firms or leading to ""sclerotic capitalism"" by failing to produce such an environment.
By analyzing high growth firms through the lens of the theory of competence blocs, Competencies and Institutions Fostering High-Growth Firms offers a more holistic view of economic growth. Rapid firm growth is a complex process requiring a number of complementary competencies. This analysis suggests that the commercialization of innovations and generation of high growth firms would be greatly facilitated if more product markets are contestable and tax structures andlabour market institutions are adjusted to stimulate the emergence of more effective competence blocs.
The three institutional categories that are key areas for the promotion of high growth firms include the tax system, the organization oflabour markets and product market regulations. The authors characterize institutions as either fostering dynamic capitalism, by providing a favourable environment for the emergence of competence blocs and the generation of high growth firms or leading to ""sclerotic capitalism"" by failing to produce such an environment.
By analyzing high growth firms through the lens of the theory of competence blocs, Competencies and Institutions Fostering High-Growth Firms offers a more holistic view of economic growth. Rapid firm growth is a complex process requiring a number of complementary competencies. This analysis suggests that the commercialization of innovations and generation of high growth firms would be greatly facilitated if more product markets are contestable and tax structures andlabour market institutions are adjusted to stimulate the emergence of more effective competence blocs.
Innovative Entrepreneurship as a Collaborative Effort
by Niklas Elert and Magnus Henrekson
Published 3 June 2021
Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework synthesizes the authors previous work to draw conclusions and identify new directions. It puts the spotlight on collaborative innovation blocs (CIB) and improves our understanding of how and why entrepreneurial plans are formulated and revised over time. The authors envision an institutional framework that improves the “antifragility” of CIBs and the economic system as a whole, thus enabling individual CIBs and the broader economic system to thrive when faced with adversity. Section 2 discusses how and when collaborations occur in the market order and identify entrepreneurship as an inherently collaborative function. Section 3 describes the collaborative innovation bloc and each of its skill components: entrepreneurs, inventors, early- and later-stage-financiers, key personnel, and customers. Section 4 identifies the most important critical areas affecting CIBs, thus demonstrating the usefulness of this perspective for understanding when innovation comes (and does not come) about. The last section discusses the key takeaways and limitations of the perspective before highlighting fruitful avenues for future research.