Sustaining Entrepreneurial Capitalism

William J. Baumol, New York University
Robert E. Litan, The Brookings Institution
Carl J. Schramm, Darden School of Business, University of Virginia

Abstract

The conventional wisdom is that the surge in productivity growth which has surged in the United States over the past 15 years has been attributed almost wholly to advances in the production and use of information technology. While this is certainly evident from the statistics, a driving force behind the IT revolution has been the development and growth of new firms. Indeed, the U.S. economy has achieved a remarkable transformation over the last several decades from an economy characterized by large, bureaucratic firms into one increasingly powered by entrepreneurial innovation. The challenge ahead therefore is to cement and strengthen the entrepreneurial form of capitalism. In this paper, we provide a framework for policymaking to achieve this objective.

Recommended Citation

Baumol, William J.; Litan, Robert E.; and Schramm, Carl J. (2007) "Sustaining Entrepreneurial Capitalism," Capitalism and Society: Vol. 2 : Iss. 2, Article 1.
Available at: http://www.bepress.com/cas/vol2/iss2/art1

Discussion and Commentary

Benjamin M. Friedman, William Joseph Maier Professor of Political Economy, Harvard University, Comment on "Sustaining Entrepreneurial Capitalism" (by William J. Baumol, Robert E. Litan and Carl J. Schramm) (November 2007)