Singapore: open state-led capitalism

This article provides an overview of the institutional structure of the business system of Singapore. It explores the role of the state, the financial system, ownership, and corporate governance, the internal structure of the firm (management), employment relations, education and skills formation, inter-company relations (networks), and social capital. Because Singapore has a high gross domestic product per capita, its future growth increasingly depends on productivity improvements, which in turn depend on innovation. But analysis of the city-state’s institutional arrangements indicates that they offer conflicting innovation incentives and thereby reduce private-sector innovative capabilities comparison with countries where institutional incentives complement one another (e.g. Japan and the USA). This article contributes directly to the business systems and varieties of capitalism literature and identifies institutional contingencies for comparative and international social science research in general.