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

Published by Princeton University Press 2007

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

Edited by: Eytan Sheshinski , Robert J. Strom and William J. Baumol

https://doi.org/10.1515/9780691227641

Overview
Contents

About this book

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.

Author / Editor information

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.

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

Topics

Frontmatter Publicly Available Download PDF	i
Contents Publicly Available Download PDF	v
Preface Publicly Available Download PDF	ix
Introduction Eytan Sheshinski and J. Strom Requires Authentication Unlicensed Licensed Download PDF	1
Part I INTRODUCTORY: THE MICROECONOMICS AND MACROECONOMICS OF GROWTH
Chapter 1 On Macroeconomic Models of Free-Market Innovation and Growth Robert M. Solow Requires Authentication Unlicensed Licensed Download PDF	13
Chapter 2 The Macro-context of the Microeconomics of Innovation Kenneth J. Arrow Requires Authentication Unlicensed Licensed Download PDF	20
Part II INSTITUTIONAL BASES FOR CAPITALIST GROWTH
Introduction and Comments Michael M. Weinstein Requires Authentication Unlicensed Licensed Download PDF	29
Chapter 3 Institutional Bases for Capitalist Growth Douglass C. North Requires Authentication Unlicensed Licensed Download PDF	35
Chapter 4 Capitalism and Economic Liberty: The Political Foundations of Economic Growth Barry R. Weingast Requires Authentication Unlicensed Licensed Download PDF	48
Part III INNOVATION IN MODERN CORPORATIONS
Introduction and Comments Ying Lowrey Requires Authentication Unlicensed Licensed Download PDF	71
Chapter 5 Endogenous Forces in Twentieth-Century America Nathan Rosenberg Requires Authentication Unlicensed Licensed Download PDF	80
Chapter 6 Interfirm Collaboration Networks: The Impact of Network Structure on Rates of Innovation Melissa A. Schilling Requires Authentication Unlicensed Licensed Download PDF	100
Part IV THE CONTINUING ROLE OF INDEPENDENT INNOVATORS AND ENTREPRENEURS
Introduction and Comments Sylvia Nasar Requires Authentication Unlicensed Licensed Download PDF	133
Chapter 7 The Small Entrepreneur Boyan Jovanovic Requires Authentication Unlicensed Licensed Download PDF	140
Chapter 8 Toward Analysis of Capitalism’s Unparalleled Growth: Sources and Mechanism William J. Baumol Requires Authentication Unlicensed Licensed Download PDF	158
Part V DISSEMINATION OF TECHNOLOGY AND THE PATENT SYSTEM
Introduction and Comments Edward N. Wolff Requires Authentication Unlicensed Licensed Download PDF	179
Chapter 9 Patents, Licensing, and Entrepreneurship: Effectuating Innovation in Multi-invention Contexts Deepak Somaya and David J. Teece Requires Authentication Unlicensed Licensed Download PDF	185
Chapter 10 The Market for Technology and the Organization of Invention in U.S. History Naomi R. Lamoreaux and Kenneth L. Sokoloff Requires Authentication Unlicensed Licensed Download PDF	213
Part VI INNOVATION AND TRADE
Introduction and Comments Yochanan Shachmurove Requires Authentication Unlicensed Licensed Download PDF	245
Chapter 11 Innovation and Its Effects on International Trade Ralph E. Gomory and William J. Baumol Requires Authentication Unlicensed Licensed Download PDF	261
Chapter 12 Innovation, Diffusion, and Trade Jonathan Eaton and Samuel S. Kortum Requires Authentication Unlicensed Licensed Download PDF	276
Part VII FINANCE AND INNOVATION IN THE FREE-MARKET ECONOMY
Introduction and Comments Alan S. Blinder Requires Authentication Unlicensed Licensed Download PDF	301
Chapter 13 Radical Financial Innovation Robert J. Shiller Requires Authentication Unlicensed Licensed Download PDF	306
Chapter 14 Finance and Innovation Requires Authentication Unlicensed Licensed Download PDF	324
Part VIII TOWARD SOME LESSONS
Introduction and Comments Robert J. Strom Requires Authentication Unlicensed Licensed Download PDF	337
Chapter 15 The Economic Performance of Nations: Prosperity Depends on Dynamism, Dynamism on Institutions Edmund S. Phelps Requires Authentication Unlicensed Licensed Download PDF	342
Chapter 16 Pharmaceutical Patenting in Developing Countries and R&D Eytan Sheshinski Requires Authentication Unlicensed Licensed Download PDF	357
Contributors Requires Authentication Unlicensed Licensed Download PDF	367
Index Requires Authentication Unlicensed Licensed Download PDF	369