  We describe a new technique for calculating instanton effects in
supersymmetric gauge theories applicable on the Higgs or Coulomb branches. In
these situations the instantons are constrained and a potential is generated on
the instanton moduli space. Due to existence of a nilpotent fermionic symmetry
the resulting integral over the instanton moduli space localizes on the
critical points of the potential. Using this technology we calculate the one-
and two-instanton contributions to the prepotential of SU(N) gauge theory with
N=2 supersymmetry and show how the localization approach yields the prediction
extracted from the Seiberg-Witten curve. The technique appears to extend to
arbitrary instanton number in a tractable way.
