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.

Schumpeter, entrepreneurship, growth, knowledge, unemployment
dx.doi.org/10.1007/s001910050003, hdl.handle.net/1765/15881
ERIM Top-Core Articles
Journal of Evolutionary Economics
Erasmus Research Institute of Management

Audretsch, D.B, & Thurik, A.R. (2000). Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy. Journal of Evolutionary Economics, 17–34. doi:10.1007/s001910050003