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  • 2022
  • Chapter
  • The Role of Innovation and Entrepreneurship in Economic Growth

Creating 'Smart' Policy to Promote Entrepreneurship and Innovation

By: Karen G. Mills and Annie Dang
  • Format:Print
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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 Michael J. Andrews, Aaron Chatterji, Josh Lerner, and Scott Stern. Chicago: University of Chicago Press, 2022.
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About The Author

Karen Mills

General Management
→More Publications

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    • March 2022 (Revised April 2022)
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    The Servicification of the U.S. Economy: The Role of Startups versus Incumbent Firms

    By: Mercedes Delgado, J. Daniel Kim and Karen G. Mills
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    A Note on Contextual Intelligence

    By: Caroline M. Elkins, Tarun Khanna, Vikram S. Gandhi, Karen G. Mills and Leonard A. Schlesinger
More from the Authors
  • Pittsburgh: A Successful City? By: Karen Mills, Caroline Elkins, Vikram Gandhi, Gabriella Elanbeck and Zeke Gillman
  • The Servicification of the U.S. Economy: The Role of Startups versus Incumbent Firms By: Mercedes Delgado, J. Daniel Kim and Karen G. Mills
  • A Note on Contextual Intelligence By: Caroline M. Elkins, Tarun Khanna, Vikram S. Gandhi, Karen G. Mills and Leonard A. Schlesinger
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