Firm Dynamics and Innovation in the Netherlands, a Comment on Baumol

There is a growing consensus that entrepreneurship in the Schumpeterian sense plays a significant role in generating sustained rates of productivity growth. Empirical evidence for the role is scarce, owing to the difficulty in finding appropriate measures for such entrepreneurship. This note shows new ways to integrate theory and evidence and reviews some recent empirical evidence on cross-country differences in innovative activity. © 2004 Kluwer Academic Publishers