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Public Entrepreneurship and the Economics of Reform

  • Public entrepreneurship is commonly understood as the outcome of the activities of a Schumpeterian political innovator. However, empirical research suggests that changes to a more efficient economic policy, even if it is known and technically easy to implement, are usually delayed. This is difficult to reconcile with Schumpeterian notions of public entrepreneurship. In this paper, it is argued that the attempt to transfer a Schumpeterian approach to the public sector is fundamentally flawed. Institutional checks and balances that characterise most modern liberal democracies make the strategy of bold leadership an unlikely choice for an incumbent. If change occurs, it occurs normally as a response to the fact that the status quo has become untenable. From a normative point of view, it is argued that if public entrepreneurship nevertheless occurs, it will often be associated with unwanted consequences. A dismantling of formal institutional checks and balances is therefore not reasonable.

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Metadaten
Author: Jan SchnellenbachORCiD
DOI:https://doi.org/10.1017/S1744137407000641
ISSN:1744-1382
Title of the source (English):Journal of Institutional Economics
Document Type:Scientific journal article peer-reviewed
Language:English
Year of publication:2007
Contributing Corporation:Philipps-University Marburg
Tag:Schumpeterian political economy; political innovation; public entrepreneurship; reform processes
Volume/Year:3
Issue number:2
First Page:183
Last Page:202
Faculty/Chair:Fakultät 5 Wirtschaft, Recht und Gesellschaft / FG VWL, insbesondere Mikroökonomik
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