Capitalism's Growth Miracle: The Free Market Innovation Machine: The Free Market Innovation Machine

Author: William Baumol
Publisher:
Publish Date: 2004-01-01
Features: This book is beautifully written and meticulously structured, allowing us to gain a bird's-eye view of the entire economic process, particularly a fascinating phenomenon: the coexistence of competitive and cooperative learning processes. This phenomenon is likely to become a significant driving force for research. It is a highly valuable book, and the author's experience, wisdom, and analytical abilities make its ideas self-evidently important. Why can capitalism create unprecedented economic growth? Why have the living standards of countries like the United States, Germany, and Japan risen exponentially over the past century? Most scholars have long regarded price competition as the driving force behind growth, but Baumol takes a unique approach, arguing that growth is driven by the combination of three factors: systematic innovation within firms, fierce competition among all firms in an innovative industry to produce new products and create new processes, and collaboration between firms in creating and applying innovation.