There have been a large number of innovations in scholarship in the U.S. academy over the past 25 or so years and very few from scholars in other parts of the world. For instance, because both of us work in the area of and we were both acutely aware of the large differences in the receptivity to and economics as between the U.S. and Europe. The U.S. academy has generously embraced and economics (and some other innovations), while Europe (and the rest of the world) has not. Why has the U.S. led the world in the production and adoption of scholarly innovations? This Article seeks to answer that question generally and with particular reference to and In Part II we deal with two definitional issues - what we mean by a legal and what counts as law and economics. The scholarly innovations on which we focus are new methods of looking at many areas of the law, such as feminist jurisprudence, or the articulation of the principles and boundaries of an entire new area of law, such as elder law. By law and economics, we mean the application of economic analysis to any of the area to which its application would not be obvious. Then in Part III we offer a series of anecdotes and empirical studies designed to show that and economics is much more prominent in U.S. scholarship than in European scholarship. We then seek, in Part IV, explanations for the differences between the U.S. and European academies in their production and adoption of scholarship innovations generally and with respect to and economics particularly. Our central claim is that it is the competitiveness of higher and education that is the principal explanation for the scholarly innovativeness of the U.S. and the lack of competition (and the consequent lack of an incentive to innovate) in European higher and education that explains the differences. We further hypothesize that the production and adoption of and economics are attractive only to those who have experienced a prior scholarly innovation - realism. We draw a clear line of intellectual heritage from realism to and Before settling on competition and realism as the principal explanations for the production and adoption of scholarship innovations, we canvass (and reject) a large number of alternative explanations, such as political ideology, money, the differences between common and civil systems, the structure of education, and more. In Part V we draw a connection between the standard economic theory of innovation and diffusion and our observations in the prior four sections of the Article. That economic theory of innovation and diffusion identifies three factors - demand, supply, and market structure - as determining the presence and pace of innovation and diffusion. We relate each of those factors to observable differences between the U.S. and Europe, showing that our explanation of the production and adoption of scholarly innovations follows the same factors as does the economic theory of innovation in production techniques.