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Policy environment

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While entry and growth of new firms is important, so is their adaptability to changes in the economy and their ability to exit when necessary. New enterprises drive a large number of obsolete firms out of the market and often do not survive very long themselves. A policy environment that fosters the start‐up and growth of new firms is essential for innovation to flourish.
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Document Type: Review Article

Publication date: 2010-05-01

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