J. A. Schumpeter, a Theorist of Innovation and a Historian of Economic Science (original) (raw)

SCHUMPETER’S VIEW ON INNOVATION AND ENTREPRENEURSHIP

We are living in a complex and dynamic world in which innovation and entrepreneurship are occupying a decisive role for economic development. According to Joseph Alois Schumpeter "carrying out innovations is the only function which is fundamental in history". He also accented that It is entrepreneurship that "replaces today's Pareto optimum with tomorrow's different new thing". Schumpeter's words that entrepreneurship is innovation have never seemed so appropriate as the nowadays, when modern capitalism is experiencing a serious crisis and lost his strength during last subprime and euro-debt crises. The purpose of this paper is the analysis of the Schumpeter's innovation concept in a context of "first" and "second" Entrepreneurship theory.

The concept of entrepreneur of Schumpeter in comparison to Kirzner

MISES: Interdisciplinary Journal of Philosophy, Law and Economics

This paper analyzes Schumpeter’s concept of the entrepreneur in comparison to Kirzner and the Austrian School of Economics. For this purpose, the research uses the original German text as the reference, both the first larger edition of 1911 and the later shorter editions (mainly the seventh edition of 1987, which is an unaltered reprint of the fourth edition of 1934). To elaborate on the differences and similarities between Schumpeter and the Austrian approach, the study focuses on the aspects of equilibrium, discovery, speculation, capital, profit, institutions, and development. The analysis shows how the entrepreneur acts as the motor of economic development and how profit and profit expectations serve as the motifs of entrepreneurial action – both for the pioneer of innovation and the imitators. Different from the Austrian School, Schumpeter applies the concept of equilibrium in the neoclassical sense as the starting point of his dynamic analysis. The Schumpeterian entrepreneur i...

Schumpeter's innovations as the main factor of economic development: [preprint]

2017

This paper gives arguments the powerful innovation activities ensure a rapid economic development o f the countries. It is shown the recent facts confirm the Schumpeter's theory o f economic development and it means that only innovation activities can provide the real economic development. Author concentrates attention on the conceptual meaning o f Schumpeter's innovations as an isolated factor o f economic development which creates a new added value and which may become a kind o f 'a stem cell' o f the new mainstream o f economic theory as it was pu t forward by Schumpeter. The paper considers hypothesis that disregard o f phenomenon o f "innovation" as exogenous isolated factor o f economic development led to the arising gap between the fundamental economic theory (mainstream) and the real innovation processes o f modern economic life. The distinction o f Schumpeter’s theoretical approach from Neoclassical logic lies in its recognition o f the inner force...

The elusive concept of innovation for Schumpeter, Marschak and the early econometricians

Research Policy, 2014

The modern concept of innovation is a crucial part of the analysis of capitalism as an adaptive system, and it is due to Schumpeter. Consequently, Schumpeter's role as a "prophet of innovation" has been rightly emphasized. This paper contributes to that history presenting some of the difficulties Schumpeter suffered as a formal representation of innovation was proposed by his fellow econometricians, as proved by the case of one of such dialogs, that with Jacob Marschak, at the time the director of the Cowles Commission and vice-president and then president of the Econometric Society. It is shown how Schumpeter elaborated his concepts of endogenous innovation and of industrial mutation as contrasted to the mechanical view of his fellow econometricians. Finally, the paper emphasizes the changes of the concept of randomness through the debate.

The Theory of Economic Development of J.A. Schumpeter: Key Features

2016

This paper comprises translation into English the preface of Iurii Bazhal to the first Ukrainian edition of Joseph Schumpeter’s famous fundamental book “The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle” that was translated in Ukrainian and published in 2011 in commemoration of its 100th anniversary. The paper reveals the contemporary significance of this classical book as the challenger on replacing the neoclassical approaches in capacity to become the mainstream of modern economic theory. It is shown the Schumpeter’s approach gives a new vision of driving forces for economic development where a crucial conceptual place belongs to category the innovation. Second part of the paper reviews modern Neo-Schumpeterian approaches which have substantiated the importance of the structural innovation technological change of national economy for economic development. The government must permanently analyze a compliance of the actual...

Joseph A. Schumpeter and Innovation

Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship, 2013

Creative destruction; Growth and development; Modernization A variety of factors will cause changes in an economy. Among the most important are growth and development. These involve the introduction of innovations into the economy-such as new products, productive techniques, or technology. These special factors were analyzed by economist Joseph A. Schumpeter who became known for his contributions to economic theory in the area of innovation and entrepreneurship. This entry introduces Schumpeter's philosophy as well as his theoretical construct of creative destruction. He is often credited for starting modern growth theory that is based on the inevitable by-product of the process of development and innovation. Schumpeter's description of the innovation process and its diffusion continues to be characteristic in the contemporary knowledgeand technologically driven global economy (Carayannis and Ziemnowicz 2007).

Schumpeter and the History of Economic Thought

2015

Schumpeter's The History of Economic Analysis, is a tour de force of scholarship. The display of erudition is truly unbelievable. How may one man and then digested have acquired much knowledge? Not only does the History offer two thousand years of economics, from Aristotle to Paul Samuelson, But also, it expertly almost ranges over all the other social sciences, history and belles letters as well. For more that 1,100 pages on the prose flows in a way That one has come to expect from Schumpeter the fluent style, the vivid analogy, the striking metaphor, the arresting aside. Our goal is to present the main thoughts of Schumpeter on the complex relationships between Economic History and Epistemology of Science. This design has three aspects that interest us: (a) its amplitude to conceive the economy as part of the overall development of scientific knowledge; (B) its relevance and the Applied examples used by the author; (C) its methodological facing tremendous problems facing the economy with the other sciences.