De Gruyter Handbook of Sociology of Innovation and Entrepreneurship

This chapter reviews recent literature on innovation and entrepreneurship in Asia, emphasizing the pivotal role of Asian states and business groups (BGs). It first examines how these entities, integral to Asia’s coordination-oriented economic systems, have fostered innovation and entrepreneurship, and assesses both their successes and limitations. It then explores theoretical frameworks that explain the enduring influence of states and BGs, even as market-based institutions have developed substantially in Asia. The chapter also identifies opportunities for cross-fertilization between innovation and entrepreneurship research, showcasing how each field can leverage the other’s methodologies and theoretical perspectives to advance understanding. Finally, it highlights key unresolved questions, such as the conditions under which Asian coordination-oriented economies can effectively integrate liberal market elements to boost innovation and entrepreneurship. Overall, the authors' review uncovers the complex and dynamic influence of states and BGs on innovation and entrepreneurship in Asia, suggesting promising directions for future research.