A theoretical comparison of developmental state and entrepreneurial state: Catch up or technological advancement

Abstract

This paper presents a critical comparison of the developmental state and the entrepreneurial state, contributing to the existing literature by highlighting the advantages and necessity of an entrepreneurial state over a developmental state through the connection between public institutions and spinoffs. It is widely acknowledged that the state plays a significant role in the economy and development of both developed and emerging countries. While there is ongoing debate regarding the role of the state in the United States compared to Europe and Asia, it is important to recognize the hidden role of US public institutions in technological advancement and innovation. The paper begins by categorizing factors related to research, technology, and innovation into basic-applied research, technological innovations, and incremental innovations. Subsequently, the concepts of the entrepreneurial state and developmental state are defined in relation to technology, innovation, and competition. In the final section, a comparison is made between the entrepreneurial state and the developmental state, demonstrating that theoretically, the entrepreneurial state is essential and offers numerous advantages over the developmental state.