Peter Klein: Institutions, Policy and Entrepreneurship

Aletse López  | 02 de noviembre de 2018  | Vistas: 59

Peter G. Klein presents the impact of institutions and particular government policies on entrepreneurship and innovation.

Free markets, the Rule of Law, private property, economic freedom and broader social and cultural attitudes toward experimentation and failure are the best institutions and the best case scenario for entrepreneurship development.

We believe entrepreneurship is a key to innovation, both technological innovation and other kinds of innovation and we believe innovation is critical for economic growth, for improvements in the standard of living and for prosperity and well-being overall”.

He talks about entrepreneurship as a concept and the contradictions he have found when people say it’s necessary certain policies to promote innovation because technology is a “public good” and the society need subsidies to stimulate development.

In free market, many people believe, you don’t get enough innovation, I challenge that view in my remarks today”.

He gives example of different countries that had try targeted policies for small business and startups. Did these policies work?, he asks. There’s evidence that direct subsidies didn’t work. He presents results about studies of these policies. Those industries that receive more subsidies, perform the worst than those who don’t. Also, incubators doesn’t work very well, they even have a negative effect.

Learn what is the right institutional environment for entrepreneurship development and economic growth.


Economist, professor and researcher


Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín