Political economy has been at the core of entrepreneurship research since its conception. Although the entrepreneur is frequently regarded as the key figure in the capitalist system, academic research in economics has for a long time overlooked the entrepreneur in its analyses of growth. In terms of political economy this neglect has been even more glaring. This research review discusses the most important contributions from a very scattered and disparate research field.
Magnus Henrekson and Tino Sanandaji
one of the key developments in economic research and policy analysis in the last two decades. At the same time, the entrepreneur has made a comeback, resurrected as one of the prime value creators in society. This comprehensive research review builds on Baumol’s 1990 framework to categorize and classify the growing research field that explores the interplay between institutions and entrepreneurship. It also contains the unique feature of examining the ways in which entrepreneurs themselves shape institutions.