Abstract

The role of institutional environments in promoting entrepreneurship has been examined by prior scholars. Likewise, institutional environments are known to influence the extent and nature of innovation. However, these dependent variables have often been considered separately. We do not have a clear understanding of whether these institutional environments have similar or differential impacts when both innovation and entrepreneurship are considered. This is important since government policies are often made with the assumption that both innovation and entrepreneurship will be affected in the same way (i.e., positively) as a result of promotional initiatives such as tax breaks, incentive schemes, etc.

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