The contributors to this volume seek further understanding of the microfoundations of economic growth. It focuses on three subjects that interested the great Austrian and Harvard economist, Joseph A. Schumpeter: innovation, technological change, and economic growth. The first part of the volume treats institutions, markets, and entrepreneurs, without which analysis of the firm makes little or no sense. The second part focuses on the firm as innovator, placing heavy emphasis on the role of knowledge formation. The subjects of innovation and knowledge formation are approached from three perspectives: theoretical; industry (case) studies; and empirical (cross section and panel data) analysis. In the third part of the book the action moves from the firm to the "macro" or economy-wide level. The volume's unique feature is combining institutions, the innovative behavior of firms, and an intuitively dynamic, macroeconomic analysis, all from a Schumpeterian perspective. It is argued that the study of micro-institutions such as firms and the evolving nature of markets are necessary ingredients to understanding macro-oriented phenomena such as economic growth. It is in this sense, then, that the book is concerned with microfoundations. Contributors are Daniele Archibugi, Spyros Arvanitis, David B. Audretsch, John R. Baldwin, Gerard Ballot, Pontus Braunerhjelm, Dagobert L. Brito, Uwe Cantner, Bo Carlsson, Robert W. Clower, Richard Day, Rinaldo Evangelista, Jan Glete, Horst Hanusch, Heinz Hollenstein, Michael D. Intrilgator, George Johnson, Joanne Johnson, Aija Leiponen, Staffan Laestadius, Richard N. Langlois, Frank M. Machovec, Maureen McKelvey, Valentina Meiciani, Douglass C. North, Giulio Perani, Andreas Pyka, Fabio Rapiti, Roberto Simonetti, Frank Stafford, Paula E. Stephan, Erol Taymaz, Clas Wihlborg, Erica R. Worth, and S. Y. Wu. Gunnar K. Eliasson is Professor of Industrial Economics, Royal Technical Institute (KTH), Stockholm. Christopher Green is Professor of Economics, McGill University. Charles R. McCann, Jr., is Research Associate, Department of Economics, University of Pittsburgh.

Gunnar Eliasson is Professor of Industrial Economics, Royal Technical institute (KTH), Stockholm. He is former President of the Industrial Institute for Economic and Social Research, Stockholm, and Chief Economist, Federation of Swedish Industries, as well as President of the International Joseph A. Schumpeter Society, 1995-96. He has published many books and papers in the area of industrial economics, including Firm Objectives, Controls, and Organization: The Use of Information and the Transfer of Knowledge within the Firm.Christopher Green is Professor of Economics at McGill University. His areas of expertise, in which he has published widely, include poverty, unemployment, and industrial organization and policy. His books include Negative Taxes and the Poverty Problem; Parting as Friends: The Economic Consequences for Quebec (with J. McCallum): and three editions of Canadian Industrial Organization and Policy.Charles R. McCann Jr. is Research Associate, Department of Economics, University of Pittsburgh. His books include Probability Foundations of Economic Theory and F. Y. Edgeworth: Writings in Probability, Statistics, and Economics. He is involved in a wide variety of other publishing projects.