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from Part IV - Institutional Ecology of Entrepreneurship
Published online by Cambridge University Press: 02 May 2024
This chapter discusses the relationship between the rule of law and innovation, holding that the rule of law protects rights, not interests. Protecting interests is incompatible with market competition and hinders innovation and entrepreneurship. By comparing Great Britain and France during the first and second industrial revolutions, this chapter shows that the protection of rights is related to the rise and fall of a country. Innovation grows out of an ecosystem of free competition. Artificial prohibitions on innovation stifle it.
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