Working Paper No. 1368

Fertile Soil for Intrapreneurship: Impartial Institutions and Human Capital

Published: November 11, 2020Pages: 32Keywords: Intrapreneurship; Impartial institutions; Human capital; Machine-learningJEL-codes: L26; O30; E02; I2; O17

Fertile Soil for Intrapreneurship: Impartial Institutions and Human Capital Martin Ljunge and Mikael Stenkula


Intrapreneurs, entrepreneurial employees, constitute an important force behind innovations in the economy. Yet, what factors that promote intrapreneurship at the country level are an underdeveloped research area. This paper provides a seminal contribution regarding the methodological approach and the broad set of potential explanatory factors studied. Based on machine-learning techniques (LASSO and EBA methods), we investigate the influence of over 60 factors capturing institutional, demographic, cultural, and developmental factors.

We find that the quality of government measured as impartiality, i.e., that the political institutions treat the citizens in a non-discriminatory fashion and do not favor some groups or individuals, and the level of human capital, measured as the average years of schooling, are the most important factors predicting the level of intrapreneurship across countries. Instrumental variable results support a causal interpretation. The findings emphasize the importance of policy to establish well-functioning and impartial institutions as well as to promote higher education.

 


Reference:

Ljunge, Martin and Mikael Stenkula (2020), "Fertile Soil for Intrapreneurship: Impartial Institutions and Human Capital". IFN Working Paper No. 1368. Stockholm: Research Institute of Industrial Economics (IFN).

Martin Ljunge

Contact

Ph: +46(8) 665 4517
martin.ljunge@ifn.se

Mikael Stenkula

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Ph: +46 8 665 4530
Mob: +46 700 44 87 27
mikael.stenkula@ifn.se

Interdisciplinary European Studies

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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