Tuesday, May 16, 2017
... Mr Baumol's primary intellectual focus was the entrepreneur, whose role was badly neglected by prevailing economic theories. This he reckoned was an intolerable omission. The differences between rich countries and poor ones rests on differences in their uses of technology, he argued, and that it is through enterprising individuals and firms that innovations go from the drawing board to active use across an economy. Business theories, he lamented, inevitably treated people as automatons, rather than potential revolutionaries.
Mr Baumol did better, casting entrepreneurs as crafty strivers dedicated to raising their personal status, who plot their course in life based on the incentives they face. Policy determines whether that means climbing the bureaucracy of founding Microsoft.
-as taken from this Free Exchange essay in The Economist