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This paper serves as an introduction to the special issue of Entrepreneurship Theory and Practice on government policy and entrepreneurial activity. Entrepreneurship is an important engine of growth. Government policy, in turn, shapes the institutional environment in which entrepreneurial decisions are made. Thus, government policy is important for entrepreneurship. But what policies are more conducive to productive entrepreneurship? In spite of a significant amount of work on this and related topics, there is still much we do not know about this important relationship. After reviewing recent literature on entrepreneurship policy, this paper summarizes the contributions included in this volume and puts them in the context of the ongoing research debate. The goal of the special issue is to address important unanswered questions and trigger a constructive debate among diverging views.