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4.7
66 reviewsFor readers who are not historians, history can nevertheless make fascinating reading. For one thing, the plots are often more improbable and more daring than a work of fiction. But entertainment is not the purpose of this book. Rather, it was written to investigate several hypotheses that are of considerable importance for the general welfare of society, hypotheses that, unfortunately, resist testing by standard procedures such as statistical analysis or controlled experiment. Only history seems to offer any promise of providing evidence for their verification or rejection.
In brief, the first hypothesis asserts that the practical utilization of inventions and their indispensable contribution to economic growth (at the very least, the rate of such growth and hence the level of per capita income) will be well below the levels they might otherwise have achieved without the intervention of entrepreneurs. But the entrepreneur's contribution is much more than this. If entrepreneurship were just "another factor," far more inventions would have been born to blush unseen. That is, without them, we would have basically nothing of the unprecedented growth miracle of the recent centuries.
The second hypothesis goes in a direction rather different from the first. It asserts that entrepreneurial activities are not always productive and growth enhancing. Indeed, they may sometimes sabotage growth and prosperity.
The third hypothesis is that the direction taken by entrepreneurial activity depends heavily, at any particular time and in any particular society, on the prevailing institutional arrangements and the relative payoffs they offer to entrepreneurial activities that promote growth and those that do not, or those that even handicap it.
The research underlying this book was undertaken out of general interest in the subject, but also with the goal of shedding light on these three hypotheses.
