Abstract
PurposeThis paper seeks to examine how productive entrepreneurial activities, such as innovation, influence unproductive entrepreneurial activities, such as regulatory rent seeking. Design/methodology/approachTo investigate the argument the authors consider Bavaria's brewing industry in the fourteenth through sixteenth centuries using an analytic narrative approach. FindingsThe example of Bavaria's brewing industry suggests that productive entrepreneurial activities may increase unproductive entrepreneurial activities. Confronted with a situation in which innovation erodes their monopoly returns, legally protected producers and policymakers reregulate industry to recapture lost rents. Regulation policy under such reregulation tends to be more encompassing, and thus produces more unproductive entrepreneurial activity, than pre-innovation regulation policy. This reflects the greater number or variety of producers that new regulation policy must encompass for reregulation to recreate rents. Originality/valueThe paper builds on Thomas’ work, which suggests that innovation can undermine existing regulatory institutions and result in deregulation. This paper identifies an alternative channel through which productive entrepreneurial innovation may influence unproductive entrepreneurial rent seeking. It argues that productive entrepreneurial innovation by legally unprotected producers in an industry can also increase, rather than decrease, the extent of unproductive entrepreneurship in that industry.
| Original language | English |
|---|---|
| Pages (from-to) | 84-95 |
| Number of pages | 12 |
| Journal | Journal of Entrepreneurship and Public Policy |
| Volume | 1 |
| Issue number | 1 |
| DOIs | |
| State | Published - Apr 20 2012 |
| Externally published | Yes |
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All Science Journal Classification (ASJC) codes
- Strategy and Management
- Urban Studies
- Business and International Management
Cite this
The brewer, the baker, and the monopoly maker. / Thomas, Diana W.; Leeson, Peter T.
In: Journal of Entrepreneurship and Public Policy, Vol. 1, No. 1, 20.04.2012, p. 84-95.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - The brewer, the baker, and the monopoly maker
AU - Thomas, Diana W.
AU - Leeson, Peter T.
PY - 2012/4/20
Y1 - 2012/4/20
N2 - PurposeThis paper seeks to examine how productive entrepreneurial activities, such as innovation, influence unproductive entrepreneurial activities, such as regulatory rent seeking. Design/methodology/approachTo investigate the argument the authors consider Bavaria's brewing industry in the fourteenth through sixteenth centuries using an analytic narrative approach. FindingsThe example of Bavaria's brewing industry suggests that productive entrepreneurial activities may increase unproductive entrepreneurial activities. Confronted with a situation in which innovation erodes their monopoly returns, legally protected producers and policymakers reregulate industry to recapture lost rents. Regulation policy under such reregulation tends to be more encompassing, and thus produces more unproductive entrepreneurial activity, than pre-innovation regulation policy. This reflects the greater number or variety of producers that new regulation policy must encompass for reregulation to recreate rents. Originality/valueThe paper builds on Thomas’ work, which suggests that innovation can undermine existing regulatory institutions and result in deregulation. This paper identifies an alternative channel through which productive entrepreneurial innovation may influence unproductive entrepreneurial rent seeking. It argues that productive entrepreneurial innovation by legally unprotected producers in an industry can also increase, rather than decrease, the extent of unproductive entrepreneurship in that industry.
AB - PurposeThis paper seeks to examine how productive entrepreneurial activities, such as innovation, influence unproductive entrepreneurial activities, such as regulatory rent seeking. Design/methodology/approachTo investigate the argument the authors consider Bavaria's brewing industry in the fourteenth through sixteenth centuries using an analytic narrative approach. FindingsThe example of Bavaria's brewing industry suggests that productive entrepreneurial activities may increase unproductive entrepreneurial activities. Confronted with a situation in which innovation erodes their monopoly returns, legally protected producers and policymakers reregulate industry to recapture lost rents. Regulation policy under such reregulation tends to be more encompassing, and thus produces more unproductive entrepreneurial activity, than pre-innovation regulation policy. This reflects the greater number or variety of producers that new regulation policy must encompass for reregulation to recreate rents. Originality/valueThe paper builds on Thomas’ work, which suggests that innovation can undermine existing regulatory institutions and result in deregulation. This paper identifies an alternative channel through which productive entrepreneurial innovation may influence unproductive entrepreneurial rent seeking. It argues that productive entrepreneurial innovation by legally unprotected producers in an industry can also increase, rather than decrease, the extent of unproductive entrepreneurship in that industry.
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UR - http://www.scopus.com/inward/citedby.url?scp=84958527485&partnerID=8YFLogxK
U2 - 10.1108/20452101211208371
DO - 10.1108/20452101211208371
M3 - Article
AN - SCOPUS:84958527485
VL - 1
SP - 84
EP - 95
JO - Journal of Entrepreneurship and Public Policy
JF - Journal of Entrepreneurship and Public Policy
SN - 2045-2101
IS - 1
ER -