The legal system constantly follows the footsteps of innovation and attempts to discourage its migration overseas. Yet, present legal rules that inform and explain entrepreneurial circumstances lack a core understanding of the concept of innovation. By its nature, law imposes order. It provides rules, remedies, and classifications that direct behavior in a consistent manner. Innovation turns on the contrary. It entails making creative judgments about the unknown. It involves adapting to disarray. It thrives on deviations as opposed to traditional causation. This Article argues that these differences matter. It demonstrates that current laws lock entrepreneurs into inefficient legal routes. Using organizational and bankruptcy classifications it points to significant distortionary effects. It theorizes that a legal culture that wishes to entice innovation is one that requires legal agents to think like entrepreneurs. Thereafter it offers a bridge between law and entrepreneurship by providing policymakers with tools to recognize the distinctive modus operandi of innovation.
- entity choice,
- chpater 11,
- innovation process,
Available at: http://works.bepress.com/mirit_eyal-cohen/5/