This provides circumstantial evidence to support something I've thought for a long time: that America's lead in entrepreneurship is more cultural than it is a product of economic right-leaning / supply side policies. Sweden is significantly more "socialistic" than anything in the USA.

Perhaps even more significantly most of the USA is nowhere near as entrepreneurial as places like SF, LA, and NYC, despite many places having lower taxes and less regulation. There's lots of states that are more business friendly than California that have far less entrepreneurship.

Taken together these two things argue strongly against the "entrepreneurship comes from having small government" right-wing thesis. Don't get me wrong-- too much government meddling can sink business. But this argues strongly against the hard-line rhetoric that we often hear.

Edit: It does not however support the inverse thesis -- that more government is better. I personally think it is mostly cultural and all government has to do is not bork things too badly and keep the lights on and the barbarians out.