The Free-Market Innovation Machine (eBook)

Analyzing the Growth Miracle of Capitalism

William J. Baumol (Autor)

eBook Download: PDF | EPUB

2014
Princeton University Press (Verlag)
978-1-4008-5163-8 (ISBN)

Infos

William J. Baumol is Senior Research Economist and Professor of Economics, Emeritus, at Princeton University and Professor of Economics at New York University. The author, coauthor, or editor of more than thirty books, with translations into more than a dozen languages, Baumol has consulted for some of America's best-known firms. His books include Microeconomics, Superfairness, and Entrepreneurship, Management, and the Structure of Payoffs; among the books he has coauthored is Productivity and American Leadership.

---

Why has capitalism produced economic growth that so vastly dwarfs the growth record of other economic systems, past and present? Why have living standards in countries from America to Germany to Japan risen exponentially over the past century? William Baumol rejects the conventional view that capitalism benefits society through price competition--that is, products and services become less costly as firms vie for consumers. Where most others have seen this as the driving force behind growth, he sees something different--a compound of systematic innovation activity within the firm, an arms race in which no firm in an innovating industry dares to fall behind the others in new products and processes, and inter-firm collaboration in the creation and use of innovations. While giving price competition due credit, Baumol stresses that large firms use innovation as a prime competitive weapon. However, as he explains it, firms do not wish to risk too much innovation, because it is costly, and can be made obsolete by rival innovation. So firms have split the difference through the sale of technology licenses and participation in technology-sharing compacts that pay huge dividends to the economy as a whole--and thereby made innovation a routine feature of economic life. This process, in Baumol's view, accounts for the unparalleled growth of modern capitalist economies. Drawing on extensive research and years of consulting work for many large global firms, Baumol shows in this original work that the capitalist growth process, at least in societies where the rule of law prevails, comes far closer to the requirements of economic efficiency than is typically understood. Resounding with rare intellectual force, this book marks a milestone in the comprehension of the accomplishments of our free-market economic system--a new understanding that, suggests the author, promises to benefit many countries that lack the advantages of this immense innovation machine.

Produkt-Details

• Erscheint lt. Verlag: 24.4.2014
• Zusatzinfo: 19 line illus.
• Verlagsort: Princeton
• Sprache: englisch
• Themenwelt: Wirtschaft ► Allgemeines / Lexika
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Agriculture • asset • Bankruptcy • bribery • Calculation • Capitalism • Cistercians • Commodity • Competition • Consideration • consumer • Consumption (Economics) • Contestable market • Cost curve • Customer • Demand curve • Depreciation • Determination • Discounts and allowances • Economic Efficiency • Economic equilibrium • economic forces • Economic Growth • Economics • economic surplus • economist • economy • Effective competition • Efficiency • Employment • Entrepreneurship • Expenditure • Expense • Externality • Funding • General Equilibrium Theory • High Tech • Human Capital • Illustration • Incentive • income • Independent inventor • Industrial Organization • Industrial Revolution • Institution • Intellectual Property • Investment • Investor • Macroeconomics • Manufacturing • Marginal cost • marginal revenue • Market (economics) • Market Economy • Marketing • Market Mechanism • Market power • Microeconomics • Monopoly profit • National Science Board • Nobility • Oligopoly • opportunity cost • Payment • Postponement • Present Value • Price Discrimination • Price elasticity of demand • price mechanism • Pricing • private sector • product innovation • productive capacity • Productivity • Profit (economics) • Profit Maximization • Provision (accounting) • Quantity • Rate of return • Real versus nominal value (economics) • Recoupment • Rent-Seeking • Requirement • Research and Development • Revenue • Robert Solow • serfdom • Static efficiency • Supply (economics) • Tax • Technical progress (economics) • Technology • Total Cost • Total revenue • Trade-off • Utilization • Value (economics) • Wealth • welfare • Workforce productivity
• ISBN-10: 1-4008-5163-7 / 1400851637
• ISBN-13: 978-1-4008-5163-8 / 9781400851638