From Mercantilism to Innovation Systems – The Evolution of Business Environment Institutions

The contemporary economy relies not only on market mechanisms and business activities but also on a complex system of institutions that support business development. Business environment institutions (BEIs), such as business incubators, technology parks, technology transfer centers, and venture capital funds, play an increasingly important role in shaping the conditions for innovation, competitiveness, and sustainable economic growth. Their presence and functions are the result of a long-term evolution of economic thought, which gradually recognized the importance of institutions as elements enhancing market efficiency and entrepreneurship. The aim of this article is to present how business environment institutions have been and are perceived and interpreted within various strands of economic theory – from classical liberal concepts, through the new institutional economics, to contemporary approaches based on the theory of entrepreneurial ecosystems and sustainable development. This analysis not only helps to understand the origins and functions of BEIs but also highlights their growing importance in economic policy and regional development. The article serves as an introduction to further discussion and research on the increasing significance of innovation systems in the development and maturity of modern enterprises within the business environment