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25 The Legal Environment for Innovation and Entrepreneurship

  • Mark C. Suchman
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De Gruyter Handbook of Sociology of Innovation and Entrepreneurship
This chapter is in the book De Gruyter Handbook of Sociology of Innovation and Entrepreneurship

Abstract

This chapter examines the interplay between law, innovation, and entrepreneurship, arguing that law is best understood not as an exogenous pressure but as an endogenous process playing out across overlapping legal and technological fields. The chapter begins with an overview of key laws and legal institutions that constitute ‘the legal environment’ for innovation and entrepreneurship. It then explores two helpful theoretical accounts from research at the intersection of the sociology of law and the sociology of organizations: Suchman et al.’s typology of legal environments (2001) and Edelman’s model of legal endogeneity (2016). Finally, the analysis considers how these prior models could be deepened and linked more explicitly to the study of innovation and entrepreneurship by incorporating insights from research on technology use and technological change. Together, these socio-legal and socio-technical accounts suggest a revealing and generalizable model of legal and organizational fields as complex, interconnected, dynamically co-evolving systems.

Abstract

This chapter examines the interplay between law, innovation, and entrepreneurship, arguing that law is best understood not as an exogenous pressure but as an endogenous process playing out across overlapping legal and technological fields. The chapter begins with an overview of key laws and legal institutions that constitute ‘the legal environment’ for innovation and entrepreneurship. It then explores two helpful theoretical accounts from research at the intersection of the sociology of law and the sociology of organizations: Suchman et al.’s typology of legal environments (2001) and Edelman’s model of legal endogeneity (2016). Finally, the analysis considers how these prior models could be deepened and linked more explicitly to the study of innovation and entrepreneurship by incorporating insights from research on technology use and technological change. Together, these socio-legal and socio-technical accounts suggest a revealing and generalizable model of legal and organizational fields as complex, interconnected, dynamically co-evolving systems.

Chapters in this book

  1. Frontmatter I
  2. Contents V
  3. List of Figures IX
  4. List of Tables X
  5. 1 Introduction 1
  6. Theoretical Lenses
  7. 2 Ecological Approaches to Entrepreneurship 21
  8. 3 Ecological Approaches to Innovation 41
  9. 4 Evolutionary Perspectives on Entrepreneurship 61
  10. 5 Evolutionary Perspectives on Innovation 81
  11. 6 Institutional Theories of Entrepreneurship 95
  12. 7 Institutional Theories of Innovation 111
  13. 8 Market Categories and Entrepreneurship Research 131
  14. 9 Categories and Cognition in Innovation 145
  15. 10 The Social Structure of Entrepreneurship 159
  16. 11 The Social Structure of Innovation 175
  17. Data and Methods
  18. 12 The Global Entrepreneurship Monitor and Cross-National Research 195
  19. 13 European Riches: Registry Data 215
  20. 14 Using Patent Data in Innovation and Entrepreneurship Research: A Comprehensive Assessment and Recommendations 235
  21. 15 Film, Music, Books, Etc.: Artifacts of Cultural Innovation and Entrepreneurship 253
  22. 16 Innovation and Entrepreneurship in Asia: The Role of the State and Business Groups 269
  23. 17 Entrepreneurship and Innovation in Africa 289
  24. 18 Approaches to Causal Identification in Studies of Entrepreneurship and Innovation 313
  25. 19 Big Data and the Computational Social Science of Entrepreneurship and Innovation 329
  26. 20 Field Experiments in Entrepreneurship and Innovation 353
  27. The Origins of Ideas and Entrepreneurs
  28. 21 The Careers Perspective and Startups as Employers 381
  29. 22 Teams in Entrepreneurship and Innovation 391
  30. 23 Academic Entrepreneurs and Inventors 405
  31. 24 Communities of Entrepreneurship and Innovation 425
  32. 25 The Legal Environment for Innovation and Entrepreneurship 437
  33. 26 The Cultural Environment for Innovation and Entrepreneurship 467
  34. 27 Grand Challenges and Social Entrepreneurship 481
  35. The Mobilization of People and Resources
  36. 28 Narratives of Cultural Entrepreneurship 493
  37. 29 Social Relationships, Resource Mobilization, and Organizational Scaling 505
  38. 30 Status Effects in Entrepreneurship and Innovation 529
  39. 31 Early-Stage Investors 547
  40. 32 The Creation of Routines and Roles in Startups 565
  41. 33 Social Movements, Entrepreneurship, and Innovation 581
  42. Inequalities in Entrepreneurship and Innovation
  43. 34 Gender Gap in Entrepreneurship and Innovation 603
  44. 35 Innovation and Entrepreneurship: A Double-Edged Sword for Racially Minoritized Communities 623
  45. 36 Immigrant Entrepreneurs and Inventors 639
  46. 37 Entrepreneurship, Innovation, and Income Inequality 663
  47. List of Contributors 677
  48. Index 687
https://doi.org/10.1515/9783111085722-025

Chapters in this book

  1. Frontmatter I
  2. Contents V
  3. List of Figures IX
  4. List of Tables X
  5. 1 Introduction 1
  6. Theoretical Lenses
  7. 2 Ecological Approaches to Entrepreneurship 21
  8. 3 Ecological Approaches to Innovation 41
  9. 4 Evolutionary Perspectives on Entrepreneurship 61
  10. 5 Evolutionary Perspectives on Innovation 81
  11. 6 Institutional Theories of Entrepreneurship 95
  12. 7 Institutional Theories of Innovation 111
  13. 8 Market Categories and Entrepreneurship Research 131
  14. 9 Categories and Cognition in Innovation 145
  15. 10 The Social Structure of Entrepreneurship 159
  16. 11 The Social Structure of Innovation 175
  17. Data and Methods
  18. 12 The Global Entrepreneurship Monitor and Cross-National Research 195
  19. 13 European Riches: Registry Data 215
  20. 14 Using Patent Data in Innovation and Entrepreneurship Research: A Comprehensive Assessment and Recommendations 235
  21. 15 Film, Music, Books, Etc.: Artifacts of Cultural Innovation and Entrepreneurship 253
  22. 16 Innovation and Entrepreneurship in Asia: The Role of the State and Business Groups 269
  23. 17 Entrepreneurship and Innovation in Africa 289
  24. 18 Approaches to Causal Identification in Studies of Entrepreneurship and Innovation 313
  25. 19 Big Data and the Computational Social Science of Entrepreneurship and Innovation 329
  26. 20 Field Experiments in Entrepreneurship and Innovation 353
  27. The Origins of Ideas and Entrepreneurs
  28. 21 The Careers Perspective and Startups as Employers 381
  29. 22 Teams in Entrepreneurship and Innovation 391
  30. 23 Academic Entrepreneurs and Inventors 405
  31. 24 Communities of Entrepreneurship and Innovation 425
  32. 25 The Legal Environment for Innovation and Entrepreneurship 437
  33. 26 The Cultural Environment for Innovation and Entrepreneurship 467
  34. 27 Grand Challenges and Social Entrepreneurship 481
  35. The Mobilization of People and Resources
  36. 28 Narratives of Cultural Entrepreneurship 493
  37. 29 Social Relationships, Resource Mobilization, and Organizational Scaling 505
  38. 30 Status Effects in Entrepreneurship and Innovation 529
  39. 31 Early-Stage Investors 547
  40. 32 The Creation of Routines and Roles in Startups 565
  41. 33 Social Movements, Entrepreneurship, and Innovation 581
  42. Inequalities in Entrepreneurship and Innovation
  43. 34 Gender Gap in Entrepreneurship and Innovation 603
  44. 35 Innovation and Entrepreneurship: A Double-Edged Sword for Racially Minoritized Communities 623
  45. 36 Immigrant Entrepreneurs and Inventors 639
  46. 37 Entrepreneurship, Innovation, and Income Inequality 663
  47. List of Contributors 677
  48. Index 687
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