The vital role played by the entrepreneur in economic growth and technological innovation is stressed in this study of the United States' overall climate for entrepreneurship and innovation. In particular, the study examines how public policies affect the entrepreneurial process in America, and what the government's role should be in fostering an improved environment for economic growth and technological innovation. A basic conclusion of the study is that many of the shackles that stifled entrepreneurial activity in the past several decades have been removed, at least partially. As a consequence, America is now experiencing an economic rejuvenation in its old and new industries as a result of a vibrant entrepreneurial community. Entrepreneurship cannot be taught but it can be nurtured by public policies that improve the climate for innovation. Some public policy changes that are contributing to the current entrepreneurial activities are (1) the rapid growth of venture capital resulting from changes in tax laws and pension fund regulations; (2) the complete turnabout in inflationary psychology after 1980 from one of high inflationary expectations to one of low inflationary expectations; (3) deregulation of domestic industries; (4) changes in patent regulations; (5) the Stevenson-Wydler Technology Innovation Act of 1980; (6) lower tax rates; (7) a new macroeconomic management philosophy which emphasizes stable growth; (8) continued strong Federal support for basic research; and (9) continued strong resistance to domestic protectionists' pressures. The current challenge is to continue the policies that are working and initiate others to continue and encourage growth in entrepreneurship. (KC)