Institutional Reform for Innovation and Entrepreneurship: An Agenda for Europe (SpringerBriefs in Economics)

This book is open access under a CC BY 4.0 license. The authors of this book advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal. Starting with the rule of law and the protection of property rights; the tax system; the authors deal with regulations governing savings, capital and finance, and the organization of labor markets and social insurance systems. Framework strategies related to the regulations governing goods and service markets, bankruptcy and insolvency are also put forward. A core understanding and future path is also provided towards R&D, commercialization and knowledge spillovers; human capital investments; and informal institutions. Acknowledgements 6 Contents 7 Executive Summary 9 1 Introduction: Europe’s Innovation Emergency 11 Abstract 11 References 16 2 Innovation, Entrepreneurship and the Complementary Skill Structure 19 Abstract 19 2.1 Entrepreneurship in Europe—A First Glance 20 2.2 The Entrepreneurial Ecosystem: The Requisite Complementary Skill Structure 24 2.3 Diverse Capitalisms in the European Union 28 References 30 3 Innovation and Entrepreneurship in the European Union—A Reform Agenda 34 Abstract 34 3.1 The Rule of Law and Protection of Property Rights 35 3.1.1 Preamble 35 3.1.2 Reform Agenda 36 3.2 Taxation 38 3.2.1 Preamble 38 3.2.2 Reform Agenda 41 3.2.2.1 Taxation of Labor Income 41 3.2.2.2 Taxation of Corporate Income 43 3.2.2.3 Taxation of Dividends and Capital Gains 44 3.2.2.4 Taxation of Stock Options 44 3.3 Regulations Governing Savings, Capital and Finance 47 3.3.1 Preamble 47 3.3.2 Reform Agenda 49 3.4 The Organization of Labor Markets and Social Insurance Systems 52 3.4.1 Preamble 52 3.4.2 Reform Agenda 54 3.4.2.1 Employment Protection Legislation 54 3.4.2.2 Social Insurance Systems 56 3.4.2.3 Conclusions on the Organization of Labor Markets 58 3.5 Regulation of Goods and Service Markets 59 3.5.1 Preamble 59 3.5.2 Reform Agenda 61 3.6 Bankruptcy Law and Insolvency Regulation 64 3.6.1 Preamble 64 3.6.2 Reform Agenda 65 3.7 R&D, Commercialization and Knowledge Spillovers 67 3.7.1 Preamble 67 3.7.2 Reform Agenda 68 3.8 Incentives for Human Capital Investment 71 3.8.1 Preamble 71 3.8.2 Reform Agenda 74 3.9 Informal Institutions 80 3.9.1 Preamble 80 3.9.2 Reform Agenda 81 3.10 Summary and Conclusions: Institutions Nurturing a More Entrepreneurial Europe 83 References 86 4 Summary and Conclusions 96 Abstract 96 References 100 Appendix 102 References 110 Front Matter....Pages i-x Introduction: Europe’s Innovation Emergency....Pages 1-8 Innovation, Entrepreneurship and the Complementary Skill Structure....Pages 9-23 Innovation and Entrepreneurship in the European Union—A Reform Agenda....Pages 25-86 Summary and Conclusions....Pages 87-92 Back Matter....Pages 93-102

entrepreneurship; innovation; Horizon 2020; capital gains; taxation; income; rights; R&D policy; technology; commercialization; financing; investment