Economic growth, innovation, institutions, and the Great Enrichment

A number of factors are held up as causes of the economic takeoff of the early 1800s in northwest Europe and North America and later Asia, though certain popularly believed factors such as geography and capital accumulation do not have much empirical support. Nor do other commonly held factors such as trade, plunder, and colonization. It is better understood today that productivity enhancing innovation, new venture and new market creation enabling consumption by a wider range of consumers yield firm and economic growth, as well as improved standards of living. In this overview, these literatures are summarized and examined. In addition the evidence regarding the effect of institutions on economic growth is discussed as well as the role of international business in the transfer of positive institutions and organizational routines.