Abstract

One of the most thoughtful books in recent years on how innovation drives economic growth is Professor William Baumol’s The Free-Market Innovation Machine. In it, Professor Baumol shows that over the past 150 years, per capita incomes in a typical free market economy have risen at unprecedented levels. He argues that the engine driving this growth is the competitive pressure a well-functioning free market economy places on firms to invest in innovation and to share new technologies with the firms that can use it most efficiently.

Disciplines

Antitrust and Trade Regulation

Date of this Version

January 2006

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