Entrepreneurship, stages of development, and industrialization

Zoltan J. Ács & Wim Naudé


Unlike in the past where industrial policy was either focused on creation and growth of state-owned firms or alternatively consisted merely of broadly functional policies without consideration for firm or entrepreneurial specifics, the requirement now is that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state. In this paper we outline some considerations for such an industrial policy where the entrepreneur-state nexus is paramount. Moreover, we argue that such an industrial policy will need to take into consideration that the entrepreneur-state nexus is evolving, and that it depends on the stage of development of a particular country.

Keywords: entrepreneurship, industrialization, structural change, industrial policy, innovation, development

JEL codes: O32, L52, L53, M13

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