Working Paper No. 368: The State of the Entrepreneurial State: Empirical Evidence of Mission-Led Innovation Projects around the Globe

PublicationWorking paper
Christian Sandström, Johan P. Larsson, Karl Wennberg

Abstract

This paper reviews theoretical rationales for mission-oriented innovation policy and provides an empirical overview of extant 28 papers and 49 cases on the topic. We synthetize varieties of mission formulations, actors involved, and characteristics of missions described as more or less failed or successful. 59 percent of the studied missions are still ongoing, 33 percent are considered successful and 8 percent as failures. 67 percent of the studied missions have taken place in Europe, 24 percent in North America and 8 percent in Asia. The majority of innovation projects referred to as missions do not fulfill the criteria defined by the OECD. Results suggest that missions related to technological or agricultural innovations are more often successful than broader types of missions aimed at social or ecological challenges. Challenges regarding the governance and evaluation of missions remain unresolved in the literature. We find no case that contains a cost-benefit analysis or takes opportunity cost into account.

Batbaatar, M., Larsson, J. P., Sandström, C., & Wennberg, K. (2023). The State of the Entrepreneurial State: Empirical Evidence of Mission-Led Innovation Projects around the Globe. Working Paper No. 368.


Similar content

Does local government corruption inhibit entrepreneurship?
Article (with peer review)Publication
Wittberg, E., Erlingsson, G. Ó., Wennberg, K.
Publication year

2024

Published in

Small Business Economics, 62(2), 775-806

Abstract

The dominant ‘sand in the wheels’ view holds that entrepreneurship is strongly inhibited by corruption. Challenging this, the ‘grease the wheels’ view maintains that corruption might increase entrepreneurship in highly regulated economies. We extend the basic predictions of these theories by examining entrepreneurs’ start-up decisions, as well as their location choices, in a seemingly low-corruption environment: Swedish municipalities. Combining a validated index of corruption perceptions in local government with population data on new entrepreneurs, nested logit models reveal that even in a low-corruption setting such as Sweden, perceptions of corruption can deter latent entrepreneurs. We also find that a minority of entrepreneurs relocate from their home municipalities to establish their start-ups elsewhere. Surprisingly and contrary to expectations, these relocating entrepreneurs often relocate from relatively low-corruption municipalities to others that are more corrupt. Implications for future research and public policy are discussed.

Learning from Overrated Mission-Oriented Innovation Policies: Seven Takeaways
Book chapterPublication
Henrekson, M., Sandström, C., & Stenkula, M.
Publication year

2024

Published in

Springer Nature.

Abstract

This chapter integrates findings from several different case studies on mission-oriented innovation policies (MOIPs) and makes use of the existing literature to briefly describe three other missions: The War on Cancer, homeownership in the United States, and the Swedish Million Program. Together with the analyses in the other chapters of this volume, seven takeaways regarding mission-oriented innovation policies are developed and described: (1) wicked problems cannot be solved through missions, (2) politicians and government agencies are not exempt from self-interest, (3) MOIPs are subject to rent seeking and mission capture, (4) policymakers lack information to design MOIPs efficiently, (5) MOIPs distort competition, (6) government support programs distort incentives and result in moral hazard, and (7) MOIPs ignore opportunity costs. These seven takeaways are illustrated using the cases described in this chapter and elsewhere in this volume.

The state of the entrepreneurial state: Empirical evidence of mission-led innovation projects around the globe. In Moonshots and the New Industrial Policy (pp. 125–143)
Book chapterPublication
Batbaatar, M., Larsson, J. P., Sandström, C., & Wennberg, K.
Publication year

2024

Published in

In Moonshots and the New Industrial Policy (pp. 125–143). Springer.

Abstract

This chapter reviews theoretical rationales for mission-oriented innovation policy and provides an empirical overview of extant 28 papers and 49 cases on the topic. We synthetize varieties of mission formulations, actors involved, and characteristics of missions described as more or less failed or successful. Fifty-nine percent of the studied missions are still ongoing, 33 percent are considered successful, and 8 percent as failures. Sixty-seven percent of the studied missions have taken place in Europe, 24 percent in North America, and 8 percent in Asia. The majority of innovation projects referred to as missions do not fulfill the criteria defined by the OECD. Results suggest that missions related to technological or agricultural innovations are more often successful than broader types of missions aimed at social or ecological challenges. Challenges regarding the governance and evaluation of missions remain unresolved in the literature. We find no case that contains a cost-benefit analysis or takes opportunity cost into account.

Show more