Nils Karlson: Bureaucrats or Markets in Innovation Policy? – a critique of the entrepreneurial state

In their latest paper, NOUS member Nils Karlson, Christian Sandström and Karl Wennberg take stock of recent suggestions that the state apparatus is a central and underappreciated actor in the generation, diffusion, and exploitation of innovations enhancing growth and social welfare. They contrast such a view of “the entrepreneurial state” with theories and empirical evidence of the microeconomic processes of innovation in the modern economy which focus on well-functioning markets, free entry and competition among firms, and independent entrepreneurship as central mechanisms in the creation and dissemination of innovations.

The full paper is available here.