Entrepreneurial egalitarianism: How inequality and insecurity stifle innovation

Abstract

Despite recent advances in our understanding of how innovation happens – for example, recognising the role of the state in fuelling private sector innovation, and of user demand in enabling the generation and dissemination of innovation – the assumption that inequality somehow enables innovation remains widespread. This paper builds upon empirical evidence that more equal societies tend to be more innovative by exploring how inequality and insecurity can inhibit innovative activity at the individual level, both directly and indirectly, by diminishing the resources and capabilities which enable innovation, and disincentivising risktaking and entrepreneurialism. The paper also outlines an ‘entrepreneurial egalitarianism’ policy agenda, exploring how social and economic policies based on egalitarian values can support innovation, focusing in particular on a contributory social security system with income guarantees that supports entrepreneurial risk-taking, an expansive conception of universal basic services, a widening of access to capital, and the potential for institutions such as trade unions to facilitate innovation