Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300175 
Year of Publication: 
2024
Series/Report no.: 
IFN Working Paper No. 1489
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
Many countries have implemented quasi-markets to enhance entrepreneurship and innovation in welfare service provision. However, the benefits have generally been limited; this can also be observed in Sweden, a country which stands out for its extensive use of quasi-markets. Based on the Swedish experience, we contend that quasi-markets can unlock their innovation potential only under a suitable institutional framework. By analyzing the development of quasi-markets in schools and eldercare nursing homes, we demonstrate that competition and profit incentives, though crucial, are insufficient catalysts for innovation in quasi-market contexts. Such markets demand a set of supporting institutions of an epistemic nature. These institutions should enable users to make knowledgeable choices and motivate entrepreneurial providers to compete and innovate in ways that align with user preferences.
Subjects: 
Entrepreneurship
Innovation
Innovation Policy
Marketized care
Merit goods
Quasi-markets
Welfare services
JEL: 
H42
H44
H75
I22
I28
L88
O31
Document Type: 
Working Paper

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