In exploring the microfoundations of economic growth, the contributors to Microfoundations of Economic Growth focus on three subjects that were of profound interest to the great Austrian and Harvard economist, Joseph A. Schumpeter: innovation, technological change, and economic growth. Here economic growth is approached from the vantage point of individual firms and industries. Most analysis of innovation takes place at the firm or industry level, while discussion of economic growth takes place at an economy-wide level. The first part of the volume examines institutions, markets, and...