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Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy*
Authors:David B Audretsch  A Roy Thurik
Institution:(1)  Institute for Development Strategies, Indiana University, SPEA, Suite 201, Bloomington, IN 47405-2100, USA (e-mail: daudrets@indiana.edu), IN;(2)  Tinbergen Institute, Erasmus University Rotterdam, Rotterdam, The Netherlands, NL;(3)  EIM Small Business Research and Consultancy, P.O. Box 7001, NL-2701 AA Zoetermeer, The Netherlands (e-mail: rth@eim.nl), NL
Abstract: This paper explains how and why the developed countries are undergoing a fundamental shift away from a managed economy and towards an entrepreneurial economy. This shift is shaping the development of western capitalism and has triggered a shift in government policies away from constraining the freedom of business to contract through regulation, public ownership and antitrust towards a new set of enabling policies which foster the creation and commercialization of new knowledge. The empirical evidence from a cross-section of countries over time suggests that those countries that have experienced a greater shift from the managed to the entrepreneurial economy have had lower levels of unemployment.
Keywords::   Entrepreneurship –  Knowledge –  Growth –  Schumpeter –  Unemployment
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