Albert Hirschman’s originality lies in his general approach to problem-solving which is hidden behind the complexity of his oeuvre. This article intends to disentangle the intricacies of his work and to reveal his specific mode of investigation.

Empirical investigation of the drivers of growth must shift down to a more microeconomic level. policy choices at the local level affect growth. Both theory and empirics need to downshift to the microeconomic level if we are to make advances in identifying specific means of encouraging innovation and growth.