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From Weber's "Spirit of Capitalism" to the Republican Spirit of Innovism: Ideas, Institutions, and the Republic of Entrepreneurs

Author

Listed:
  • Heng-fu Zou

    (IAS, Wuhan University and World Bank)

Abstract

We replace Weber's "spirit of capitalism" with a constitutional-cultural framework we call the republican spirit of innovism operating within a re-public of entrepreneurs. In such an order, ordinary people repeatedly propose, test, and lawfully imitate improvements under general, impersonal rules-secure property, open entry and exit, credible contract, and freedoms of speech and association. Building on Mises(calculation and residual claimancy), Hayek (discovery and dispersed knowledge), Kirzner (alertness and equilibration), and the historical evidence assembled by Mc Closkey, Mokyr, and Phelps, we argue that modern prosperity stems less from elite R&D or capital deepening and more from creative construction by the many. We derive empirical signatures-proposal density, feedback speed, and diffusion breadth-and outline a policy agenda favoring open standards, disclosure-oriented intellectual property, contestability, and re producibility. Case evidence from Britain (since 1700), the United States (since the 1780s), and contemporary technological and biomedical sectors shows that when rules keep feedback honest and imitation lawful, total factor productivity rises persistently.

Suggested Citation

  • Heng-fu Zou, 2025. "From Weber's "Spirit of Capitalism" to the Republican Spirit of Innovism: Ideas, Institutions, and the Republic of Entrepreneurs," CEMA Working Papers 804, China Economics and Management Academy, Central University of Finance and Economics.
  • Handle: RePEc:cuf:wpaper:804
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    References listed on IDEAS

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    1. Allen,Robert C., 2009. "The British Industrial Revolution in Global Perspective," Cambridge Books, Cambridge University Press, number 9780521868273, Enero-Abr.
    2. Philippe Aghion & Céline Antonin & Bunel Simon, 2021. "The Power of Creative Destruction," Post-Print halshs-03672082, HAL.
    3. Edmund Phelps, 2015. "Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change," Economics Books, Princeton University Press, edition 1, volume 1, number 10058-2, December.
    4. Heng-fu Zou, 2018. "The Republic of Entrepreneurs," CEMA Working Papers 686, China Economics and Management Academy, Central University of Finance and Economics.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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