Entrepreneurship, Innovation, and the Growth Mechanism of the Free-Enterprise Economies

by Eytan Sheshinski (Editor), Robert J. Strom (Editor), William J. Baumol (Editor)

Overview

How much credit can be given to entrepreneurship for the unprecedented innovation and growth of free-enterprise economies? In this book, some of the world's leading economists tackle this difficult and understudied question, and their responses shed new light on how free-market economies work--and what policies most encourage their growth.


The contributors take as their starting point William J. Baumol's 2002 book The Free-Market Innovation Machine (Princeton), which argued that independent entrepreneurs are far more important to growth than economists have traditionally thought, and that an implicit partnership between such entrepreneurs and large corporations is critical to the success of market economies.


The contributors include the editors and Robert M. Solow, Kenneth J. Arrow, Michael M. Weinstein, Douglass C. North, Barry R. Weingast, Ying Lowrey, Nathan Rosenberg, Melissa A. Schilling, Corey Phelps, Sylvia Nasar, Boyan Jovanovic, Peter L. Rousseau, Edward N. Wolff, Deepak Somaya, David J. Teece, Naomi R. Lamoreaux, Kenneth L. Sokoloff, Yochanan Shachmurove, Ralph E. Gomory, Jonathan Eaton, Samuel S. Kortum, Alan S. Blinder, Robert J. Shiller, Burton G. Malkiel, and Edmund S. Phelps.

Product Details

ISBN-13:	9780691227641
Publisher:	Princeton University Press
Publication date:	03/09/2021
Sold by:	Barnes & Noble
Format:	eBook
Pages:	400
File size:	4 MB

About the Author

Eytan Sheshinski is Sir Isaac Wolfson Professor of Public Finance at the Hebrew University of Jerusalem. Robert J. Strom is Director of Research and Policy at the Ewing Marion Kauffman Foundation. William J. Baumol is Academic Director of the Berkley Center for Entrepreneurial Studies at New York University, and Professor Emeritus and Senior Economist at Princeton University.

Table of Contents

Preface     ix
Introduction   Eytan Sheshinski   Robert J. Strom     1
Introductory: The Microeconomics and Macroeconomics of Growth
On Macroeconomic Models of Free-Market Innovation and Growth   Robert M. Solow     15
The Macro-context of the Microeconomics of Innovation   Kenneth J. Arrow     20
Institutional Bases for Capitalist Growth
Introduction and Comments   Michael M. Weinstein     31
Institutional Bases for Capitalist Growth   Douglass C. North     35
Capitalism and Economic Liberty: The Political Foundations of Economie Growth   Barry R. Weingast     48
Innovation in Modern Corporations
Introduction and Comments   Ying Lowrey     73
Endogenous Forces in Twentieth-Century America   Nathan Rosenberg     80
Interfirm Collaboration Networks: The Impact of Network Structure on Rates of Innovation   Melissa A. Schilling   Corey Phelps     100
The Continuing Role of Independent Innovators and Entrepreneurs
Introduction and Comments   Sylvia Nasar     135
The Small Entrepreneur   Boyan Jovanovic   Peter L. Rousseau     140
Toward Analysis of Capitalism's Unparalleled Growth: Sources and Mechanism   William J. Baumol     158
Dissemination of Technology and the Patent System
Introduction and Comments   Edward N. Wolff     181
Patents, Licensing, and Entrepreneurship: Effectuating Innovation in Multi-invention Contexts   Deepak Somaya   David J. Teece     185
The Market for Technology and the Organization of Invention in U.S. History   Naomi R. Lamoreaux   Kenneth L. Sokoloff     213
Innovation and Trade
Introduction and Comments   Yochanan Shachmurove     247
Innovation and lts Effects on International Trade   Ralph E. Gomory   William J. Baumol     261
Innovation, Diffusion, and Trade   Jonathan Eaton   Samuel S. Kortum     276
Finance and Innovation in the Free-Market Economy
Introduction and Comments   Alan S. Blinder     303
Radical Financial Innovation   Robert J. Shiller     306
Finance and Innovation   Burton G. Malkiel     324
Toward Some Lessons
Introduction and Comments   Robert J. Strom     339
The Economic Performance of Nations: Prosperity Depends on Dynamism, Dynamism on Institutions   Edmund S. Phelps     42
Pharmaceutical Patenting in Developing Countries and R&D   Eytan Sheshinski      357
Contributors     367
Index     369

What People are Saying About This

Thomas Hellmann

This book's remarkable achievement is to gather some of the brightest minds in economics to discuss some of the most important issues in the field—innovation, entrepreneurship, and growth. It is particularly refreshing to see these topics addressed at a variety of levels and from a variety of research perspectives. The combination of microeconomists and macroeconomists, and even economic historians, is a rare instance of communication across the subfields of economics. This impressive book will be useful to both economics generalists and specialists.
— Thomas Hellmann, University of British Columbia

From the Publisher

"This book brings together an absolutely first-rate group of thinkers, including several Nobel Prize winners, who were invited to a 2003 conference spurred by the publication of William J. Baumol's The Free-Market Innovation Machine. These thought-provoking essays illustrate the potential of Baumol's framework to considerably advance our understanding of what drives entrepreneurship, innovation, and long-term economic growth."—Scott Stern, Northwestern University

"This book's remarkable achievement is to gather some of the brightest minds in economics to discuss some of the most important issues in the field—innovation, entrepreneurship, and growth. It is particularly refreshing to see these topics addressed at a variety of levels and from a variety of research perspectives. The combination of microeconomists and macroeconomists, and even economic historians, is a rare instance of communication across the subfields of economics. This impressive book will be useful to both economics generalists and specialists."—Thomas Hellmann, University of British Columbia

Scott Stern

This book brings together an absolutely first-rate group of thinkers, including several Nobel Prize winners, who were invited to a 2003 conference spurred by the publication of William J. Baumol's The Free-Market Innovation Machine. These thought-provoking essays illustrate the potential of Baumol's framework to considerably advance our understanding of what drives entrepreneurship, innovation, and long-term economic growth.
— Scott Stern, Northwestern University

Editorial Reviews

"This book brings together an absolutely first-rate group of thinkers, including several Nobel Prize winners, who were invited to a 2003 conference spurred by the publication of William J. Baumol's The Free-Market Innovation Machine. These thought-provoking essays illustrate the potential of Baumol's framework to considerably advance our understanding of what drives entrepreneurship, innovation, and long-term economic growth."—Scott Stern, Northwestern University


"This book's remarkable achievement is to gather some of the brightest minds in economics to discuss some of the most important issues in the field—innovation, entrepreneurship, and growth. It is particularly refreshing to see these topics addressed at a variety of levels and from a variety of research perspectives. The combination of microeconomists and macroeconomists, and even economic historians, is a rare instance of communication across the subfields of economics. This impressive book will be useful to both economics generalists and specialists."—Thomas Hellmann, University of British Columbia

From the Publisher