Abstract

This chapter aims to explore the properties and nature of knowledge-intensive entrepreneurship as a systemically distributed phenomenon. The chapter introduces the notion of entrepreneurial propensity of innovation systems. It is defined as the degree to which innovation systems are conducive to entrepreneurship, creating contexts for the emergence of new firms, which are able, based on their innovation activities, to generate sales and grow, and which also help the overall system to be more conducive to innovation. The entrepreneurial propensity of innovation systems is measured through two indices: the Index of Knowledge Intensive Entrepreneurship and the Index of Knowledge Intensive Entrepreneurial Opportunities. The chapter provides evidence of this entrepreneurial propensity in the case of Sweden. Our results suggest that the Swedish national innovation system demonstrates one of the highest entrepreneurial propensities in Europe. However, there are areas for potential improvement, which could upgrade the overall performance, efficiency and effectiveness of the innovation system and, consequently, mitigate the impact of the so-called Swedish paradox. The chapter offers some potential directions for innovation policy making.