The four types of capitalism, innovation, and economic growth

William J. Baumol, Robert E. Litan, Carl J. Schramm

Research output: Chapter in Book/Report/Conference proceedingChapter

3 Scopus citations

Abstract

This article emphasizes capitalist economies' main contribution to the general welfare: economic growth far exceeding that achieved by any other economic system throughout history. It classifies capitalist economies into four categories: oligarchic capitalism, state-guided capitalism, big-firm capitalism, and entrepreneurial capitalism. It argues that all but the first category play a significant role in the growth process. State guidance has been successful in releasing economies initially mired in stagnancy and in a number of dramatic cases has managed to inaugurate a process of substantial growth. In several instances, economies dominated by large and actively innovative firms have stimulated remarkable economic performances by the countries in which they are based. The same can be said of economies in which entrepreneurial activity plays a key role.

Original languageEnglish (US)
Title of host publicationThe Oxford Handbook of Capitalism
PublisherOxford University Press
ISBN (Electronic)9780199968725
ISBN (Print)9780195391176
DOIs
StatePublished - Nov 21 2012
Externally publishedYes

Keywords

  • Big-firm capitalism
  • Capitalist economy
  • Entrepreneurial capitalism
  • Oligarchic capitalism
  • State-guided capitalism

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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