Uncover the secrets behind capitalism’s unparalleled economic growth with “The Free–Market Innovation Machine.” Esteemed economist William Baumol redefines our understanding of capitalist success, moving beyond simple price competition to reveal the critical role of systematic, relentless innovation within firms. Discover how an “arms race” of new products and processes, alongside strategic technology sharing, fuels exponential living standard increases. Baumol, drawing on extensive research and corporate consulting, argues that this innovation engine, thriving under the rule of law, is the true driver of modern economic miracles. This seminal work offers a profound new perspective on the free-market system, vital for understanding and replicating economic prosperity. A must-read for economists, business leaders, and anyone interested in the engine of capitalist growth.