facilitate entrepreneurship and innovation. In contrast, if the development and coevolution of institutions and culture are … and innovation activity. Policymakers should therefore plan and implement pro-growth structural changes to institutions …Optimal growth requires pro-growth institutions and culture. In an optimal growth pattern, institutions and culture …

Can historical institutions affect today's firm innovation? We analyze a historical experiment in 1902, when the … industrial firms in China, we show that firms in locations historically affected by the CMC rules exhibit higher innovation …