2020
Chapter
The Role of Innovation and Entrepreneurship in Economic Growth

Creating 'Smart' Policy to Promote Entrepreneurship and Innovation

Format:Print

Abstract

Entrepreneurship is a key to unlocking innovation and fostering regional and national economic productivity. Extensive studies demonstrate that small and young firms contribute to innovation and employment growth. But which of the many types of small firms are responsible? Of the over 30 million U.S. small businesses, most are sole proprietorships or local Main Street shops, and only a small number are high-growth businesses. The heterogeneity of America’s small businesses has led to some confusion and missteps in policy circles regarding the best strategies to promote entrepreneurship and innovation. We describe three policy areas: improving access to capital, delivering entrepreneurship advice and education, and creating entrepreneurial ecosystems, and show how policy solutions that drive innovation differ from support for Main Street small businesses.

Keywords

Economic Policy; High-growth; Entrepreneurship; Innovation And Invention; Business Startups; Economic Growth; Policy; United States

Citation

Mills, Karen G., and Annie Dang. "Creating 'Smart' Policy to Promote Entrepreneurship and Innovation." In The Role of Innovation and Entrepreneurship in Economic Growth, edited by Aaron Chatterji, Josh Lerner, Scott Stern, and Michael J. Andrews. University of Chicago Press, forthcoming.