Drawing on extensive research and years of consulting work for many large global firms baumol shows in this original work that the capitalist growth process at least in societies where the rule of law prevails comes far closer to the requirements of economic efficiency than is typically understood. The free market innovation machine analyzing the growth miracle of capitalism paperback april 11 2004 by william j baumol author 45 out of 5 stars 4 ratings. Drawing on extensive research and years of consulting work for many large global firms baumol shows in this original work that the capitalist growth process at least in societies where the rule. Chapter 1 introduction on the engine of free market growth pp 1 16 under capitalism innovative activity which in other types of economy is fortuitous and optional becomes mandatory a life and death matter for the firm. the free market innovation machine analyzing the growth miracle of capitalism by william j baumol princeton nj princeton university press 2002 pp xiii 318 3500 cloth the thesis of william j baumols latest book is articulated clearly at the start the free market growth engine depends ultimately on institutional rules people may have a natural entrepreneurial instinct but