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Does the entrepreneurial state crowd out entrepreneurship?

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  • David B. Audretsch

    (Indiana University)

  • Antje Fiedler

    (University of Auckland)

Abstract

This paper argues that an entrepreneurial state can inadvertently crowd out entrepreneurship. Using the context provided by Singapore, the paper finds that coordinated policies that prioritize and target capital, knowledge, and human capital accumulation in particular industries, sectors, technologies, and firms have created a formidable societal knowledge filter, which in turn can impede endogenous entrepreneurial activity. By serving as the entrepreneur, Singapore’s entrepreneurial state imposes its vision by assuming the core entrepreneurial values and traits of opportunity recognition, discovery, and action. The entrepreneurial state, at least in the case of Singapore, retards the transition to an entrepreneurial society, which, paradoxically, is the vision of Singapore’s entrepreneurial state.

Suggested Citation

  • David B. Audretsch & Antje Fiedler, 2023. "Does the entrepreneurial state crowd out entrepreneurship?," Small Business Economics, Springer, vol. 60(2), pages 573-589, February.
    • Handle: RePEc:kap:sbusec:v:60:y:2023:i:2:d:10.1007_s11187-022-00604-x
    DOI: 10.1007/s11187-022-00604-x
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    2. Lee, Neil & Ni, Metta & Boey, Augustin, 2024. "The scale-up state: Singapore’s industrial policy for the digital economy," LSE Research Online Documents on Economics 123885, London School of Economics and Political Science, LSE Library.
    3. Schou, Peter Kalum, 2024. "Unpacking the myth of the entrepreneurial state," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    4. Špetlík Václav & Čadil Jan, 2023. "When Daces Bite Deeper than Sharks – Does the SMEs Public Subsidy Dose Matter?," Review of Economic Perspectives, Sciendo, vol. 23(4), pages 233-250, December.

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