Book contents
- Capitalism and Development
- Capitalism and Development
- Copyright page
- Contents
- Preface
- Acknowledgments
- 1 The Populist Gamble
- 2 The Growth Dilemma
- 3 Illusions Shattered
- 4 Locked in Stagnation
- 5 The State as an Architect of Progress
- 6 The Urban Paradox
- 7 Building Prosperity
- 8 Global Justice
- 9 Human Capital
- 10 Corporate Titans
- 11 The Path Forward
- Appendix
- Bibliography
- Index
7 - Building Prosperity
Ideas Drive Innovation
Published online by Cambridge University Press: 09 July 2026
Book contents
- Capitalism and Development
- Capitalism and Development
- Copyright page
- Contents
- Preface
- Acknowledgments
- 1 The Populist Gamble
- 2 The Growth Dilemma
- 3 Illusions Shattered
- 4 Locked in Stagnation
- 5 The State as an Architect of Progress
- 6 The Urban Paradox
- 7 Building Prosperity
- 8 Global Justice
- 9 Human Capital
- 10 Corporate Titans
- 11 The Path Forward
- Appendix
- Bibliography
- Index
Summary
This chapter argues that ideas – not just capital or labor – are central to economic transformation. Innovation does not arise spontaneously; it requires deliberate institutional support, including investments in education, basic research, and infrastructure. The chapter explores how countries cultivate innovation ecosystems that enable risk-taking and creativity. It highlights the role of the state in shaping markets, fostering entrepreneurship, and guiding long-term strategic investment. A society’s capacity to generate, diffuse, and apply knowledge is a key determinant of its developmental trajectory.
Information
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- Chapter
- Information
- Capitalism and DevelopmentSteering Markets Toward Fairness, pp. 144 - 163Publisher: Cambridge University PressPrint publication year: 2026
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