What the study found
The study argues that welfare quasi-markets can support innovation only when they are backed by a suitable institutional framework. In the Swedish cases discussed, competition and profit incentives were important but were not enough on their own to sustain innovation in school and nursing home services.
Why the authors say this matters
The authors suggest that quasi-markets in welfare services can unlock their innovation potential only if institutions help users make knowledgeable choices and push providers to compete in ways that match user preferences. The study indicates that this is relevant for entrepreneurship and innovation in welfare service provision.
What the researchers tested
The article examines welfare quasi-markets, which are markets in publicly provided or publicly funded services. The authors analyze the development of quasi-markets in primary and secondary education and in elderly care nursing homes in Sweden.
What worked and what didn't
The findings indicate that competition and profit incentives mattered, but they were insufficient as catalysts for sustained innovation in these quasi-market settings. The authors conclude that epistemically supportive institutions were also needed to enable informed user choice and innovation aligned with user preferences.
What to keep in mind
The abstract presents Sweden as the main source of evidence, focusing on schools and nursing homes. It does not describe the detailed methods, specific measures, or any limitations beyond the claim that the Swedish experience illustrates the broader argument.
Key points
- The article argues that welfare quasi-markets need a suitable institutional framework to support innovation.
- In Sweden, competition and profit incentives were not enough to sustain innovation on their own.
- The analysis covers primary and secondary education and elderly care nursing homes.
- The authors say users need institutions that help them make knowledgeable choices.
- The paper concludes that providers should be encouraged to innovate in ways that fit user preferences.
Disclosure
- Research title:
- Quasi-markets need supportive institutions to foster innovation
- Authors:
- Niklas Elert, Magnus Henrekson
- Institutions:
- Research Institute of Industrial Economics
- Publication date:
- 2026-07-03
- OpenAlex record:
- View
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