ABSTRACT
Competitive market processes are essential for long-run development. ‘The way to permit long-run entrepreneurial growth processes to take off is to recognize and encourage the kinds of entrepreneurial discoveries that make up the short-run processes’ (Kirzner 1985: 41). If we wish to explain the growing capacity of market economies to coordinate increasingly complex arrays of economic decisions and capital structures, and if we wish to explain how markets are better than any other feasible system at increasing the economic means available to people to satisfy their disparate and manifold ends, we need a theory of entrepreneurial-discovery processes and an analysis of the institutions and policies that engender these processes.
