Most developed economies provide significant subsidies to small businesses to encourage innovation. This column argues that while subsidies to reduce entry costs may increase entrepreneurial entry, they can also lead to a reduction in the likelihood of ‘breakthrough’ inventions. Entry costs, which are incurred when an innovation project is successful, prompt small firms and entrepreneurs to pursue high-risk, high-reward innovations.
VoxEU.org
Fostering Breakthrough Entrepreneurship
Populärvetenskap
Referens
Färnstrand Damsgaard, Erika, Per Hjertstrand, Pehr-Johan Norbäck, Lars Persson och Helder Vasconcelos (2017). ”Fostering Breakthrough Entrepreneurship”. VoxEU.org, 23 januari.
Färnstrand Damsgaard, Erika, Per Hjertstrand, Pehr-Johan Norbäck, Lars Persson och Helder Vasconcelos (2017). ”Fostering Breakthrough Entrepreneurship”. VoxEU.org, 23 januari.
Författare
Erika Färnstrand Damsgaard, Per Hjertstrand, Pehr-Johan Norbäck, Lars Persson, Helder Vasconcelos