Positive-sum games specific to dynamic equilibrium are contrasted to zero-sum games associated with static equilibrium. It is shown how the involved synergistic interactions and dynamic flexibilities explain how economic growth comes about.

The central role of economic policy in an evolutionary environment is stressed. Based on a Schumpeterian view the theoretical foundations of such a policy are discussed. This investigation leads to the result that not general rules satisfying and maintaining equilibrium are required but a...