Private ownership of the means of production allows individuals to reap the rewards from economic activity, thus encouraging efficient use of resources to satisfy consumer wants. Create market-friendly institutions. Markets won't function properly without an appropriate legal code. Contracts need to be enforced. Property rights need to be upheld.
Monopoly needs to be controlled.
Institutions should facilitate economic activity and complement innovation. Maintain stable government policies. Frequent changes in tax laws or other government policies create uncertainty and instability that can make a mockery of long-range planning. Avoid protecting existing jobs, industries or businesses. The natural forces of creative destruction continuously regenerate the economy, but protection from failure prevents new, better or cheaper products from replacing older ones.