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Technological innovation has played a fundamental role in the economic prosperity of firms and countries. Despite several studies on their effects on firms and markets, it is still necessary to assess how introducing technological innovation as innovative products, processes, and services will face extant market forces and transform them. This paper introduces a model for evaluating the potential economic effects of technological innovations based on three dimensions: technological paradigm, market value, and impact on extant industries. Based on the combination of these three dimensions, eight configurations of technological innovations are presented from an intertemporal perspective, considering their impact on the economy. This model has been validated by assessing several academic patents and helps evaluate the market potential of new technologies. [ABSTRACT FROM AUTHOR]

The article aims at integrating Schumpeter's focus on innovation, entrepreneurship, and qualitative change with a theory of the demand side. It argues that, by remaining close to Schumpeter's "methodological core", it is possible to go forward with Schumpeter's seminal contribution. The new perspective deals with innovation and demand together, therefore, laying out the basics for a theory of the demand side, a goal that despite the numerous attempts has remained elusive to Neo-Schumpeterian\Evolutionist theory. Its recent development highlights a "micro" orientation that does not facilitate that task. The suggested approach in this article focuses on the exploitation of the potential implicit in current consumption patterns by means of innovation and new products. Its main goal is to provide a theoretical framework for the large number of case studies and empirical analyses of new products and innovation that constitutes the bulk of research on demand in the Neo-Schumpeterian\Evolutionist literature. That should also contribute to analyzing the structural aspects of the "demand generating" process. [ABSTRACT FROM AUTHOR]

As entrepreneurs engage in a Schumpeterian process of 'creative destruction', existing market norms and values are substantially altered, which places entrepreneurship in a central role for considering society's new ethical demands. This essay attempts to fill a lacuna in the scholarship of entrepreneurial ethics that stops short of considering the ethical awareness of entrepreneurs regarding the reconstitution of values following disruption. The work of Friedrich Nietzsche informs our understanding of entrepreneurial ethics and provides guidance for 'new philosopher' entrepreneurs who become ethically aware of their task and endeavour to replace old values with new. Employing the lessons of Nietzsche can, therefore, provide valuable ethical insights for entrepreneurial ethicists as they consider what it might mean to engage in the disruption of industries, markets, and value chains. [ABSTRACT FROM AUTHOR]

O presente artigo busca discutir o papel do Estado no desenvolvimento econômico das nações com base nas formulações teóricas de Schumpeter e Nurkse. O estudo revisita e elabora uma análise teórica e crítica de suas interpretações a respeito dos condicionantes do desenvolvimento econômico. A contribuição do estudo é o tratamento complementar que se dá à questão pela lente de Schumpeter e Nurkse. Para explicar o desenvolvimento, Schumpeter teoriza a necessidade do surgimento de inovações capazes de gerar uma onda de prosperidade nacional, no entanto, é razoável afirmar que em uma nação subdesenvolvida, onde o capital sofre entraves e os empresários não possuem incentivos em investir não é plausível esperarmos o surgimento espontâneo do empreendedor schumpeteriano. Nesse sentido, Nurkse entrega como resposta, o Estado, sendo este capaz de conduzir uma massiva onda de investimentos planejados, a fim de construir um mercado nacional que seja capaz de gerar retorno ao capital, levando as nações em desenvolvimento a experimentarem uma onda virtuosa de crescimento e prosperidade econômica.

This study examines the effect of technological innovation on economic performance. Solow’s growth accounting measures the contribution of productivity to economic growth, but the active role of technological change in attaining economic growth is ignored. Kaldor emphasizes capital accumulation in technological process, but does not cover the dynamic process of technological innovation. Schumpeter explains the dynamic process by focusing on capital accumulation and efficiency. Following Schumpeter’s view of innovation, we empirically analyze the dynamics of technological innovation measured in terms of capital turnover and return on sales. Capital turnover represents process and organizational innovation, and return on sales reflects product innovation. For the empirical analysis, a large panel data set of 445 Korean firms during the period 2000–2015 is used. The empirical study performs panel regression analysis by using fixed effects model, FGLS model, dynamic GMM model, and a split sample method. The empirical results support the positive relationship between technological innovation and profitability.

This paper provides an analytical review of the literature on the role of technology cycle time (TCT) in the catching-up process of latecomers at the firm, sectoral, and national levels. At the national level, latecomer economies follow a detour that consists of economic growth through specialization in short-TCT sectors during the catching-up phase, followed by a shift to long-TCT sectors in the post-catching-up phase. The paper then discusses the double-edged nature of TCT at the sectoral level, such that short TCT can either be a window of opportunity associated with the rapid obsolescence of existing technologies and thus low entry barriers, or another source of difficulty associated with the truncation of learning from existing technologies. Only latecomers with a certain absorptive capacity can benefit from short TCT as a window of opportunity. Finally, at the firm level, this paper discusses the issue of possible convergence in the behavior of catching-up firms towards those of mature firms in advanced economies. At all three levels, the keywords are detours and convergence. Given the barriers to entry in long-TCT sectors, latecomers pursue a strategy of detouring into short-TCT sectors. That is, instead of trying to emulate incumbents by entering long-TCT sectors, latecomers take the opposite route. Subsequently, as latecomers improve their capabilities over time, they shift their specialization from short to long TCT sectors, thereby achieving convergence in behavior and strategy at the firm, sectoral, and national levels. [ABSTRACT FROM AUTHOR]

Social transformation is core to the idea of entrepreneurship, yet it plays a minor role in entrepreneurship research. We explore humanistic approaches to change by building on the Schumpeterian perspective of transformation/creative destruction and expanding it in three critical ways. First, we argue that entrepreneurship and history should engage methodologically with transformation 'as a perspective' taken by the researcher or observer. Second, we contend that to explore the process of entrepreneurial transformation historically, it is necessary to engage in a broader conceptualisation of temporality. Third, we posit that to fully grasp transformation, we ought to study not just the reconfiguration of material resources that Schumpeter has proposed but also the immaterial (intellectual and imaginative) re-evaluations that trigger social transformation, thus focussing on the semantics of transformation. The articles in this Special Issue explore entrepreneurship and transformation through these three lenses, making social transformation more central to historical entrepreneurship research. [ABSTRACT FROM AUTHOR]

Schumpeter envisioned entrepreneurship research as a way to examine and understand how capitalism changes. This notwithstanding, contemporary entrepreneurship studies predominantly explore the emergence and growth of new business firms, thus adopting a view that assumes a positive macro-level role for entrepreneurship in society even as it neglects the destructivity which was key to Schumpeter's theory. To bring capitalism back into entrepreneurship, we suggest a narrative approach to entrepreneurial history. Specifically, we introduce counternarratives to discuss new ways of thinking about the micro-macro linkage in entrepreneurship and to open up fresh understandings of creative destruction within, and beyond, capitalism. We conclude the paper with practical suggestions for new entrepreneurial histories that develop alternative narratives. [ABSTRACT FROM AUTHOR]

The COVID-19 outbreak has had severe economic consequences across the globe. The crisis emanating from the pandemic has caused demand and supply side shocks, more far reaching than any crisis in living memory. We use a new data set from the 2020/21 Egyptian Industrial Firm Behavior Survey to examine determinants of firms' resilience during the pandemic. Crisis present the opportunity for what Schumpeter (In Economics of the Recovery Program, McGraw-Hill, 1934) calls creative destruction. Have manufacturing firms been all hit by the crisis equally, or were less efficient firms more likely to exit or downsize their activities thereby 'cleansing' the market? Two sets of factors affect firm dynamics and survival: (1) firms' innate characteristics and; (2) firm behavior, which captures the extent to which good management, innovation, the adoption of advanced technologies and worker training, have provided an opportunity for firms to adapt their business models and show greater resilience in coping with the crisis. We illustrate the vulnerability of private, smaller, informal firms and those that are not located in industrial zones. Second, pre-COVID behavioral characteristics matter for firm dynamics. The food sector and sectors identified as 'COVID sectors' show more resilience. Some behavioral traits vary by sector and are more influential depending on firm size. [ABSTRACT FROM AUTHOR]

The concept of financial frictions is at the core of the Financial Frictions Approach (FFA) which underlines that to explain the financial crisis of 2007–2008 it is sufficient to add the financial system to the New Keynesian Dynamic Stochastic General Equilibrium (NK-DSGE) model. Many economists have cited Hyman Minsky among those who "emphasized the importance of financial frictions." The aim of this work is: 1) to show that Minsky cannot be considered the precursor of the FFA and that FFA does not allow for a solid explanation of financial crises; and 2) to present a sound explanation of the financial instability affecting capitalist economies based on two teachings characterizing Minsky's work. The first consists in Minsky's interpretation of John Maynard Keynes's General Theory, which recovers the revolutionary elements of Keynes's thought neglected by the Neoclassical Synthesis. The second teaching consists in underlining the need to integrate Keynes's and Joseph Schumpeter's theoretical frameworks. [ABSTRACT FROM AUTHOR]

The aim of this article is to compare and contrast the ideas of Friedrich von Hayek and Joseph Alois Schumpeter, who both adopted an indeterminist approach in their economic analyses, through a discussion of their relative strengths and weaknesses. The analysis makes extensive references the ideas of Karl Popper and Roy Bhaskar because of their profound impact on philosophical as well as economic thought. The article examines the indeterminism that marks the theories of Hayek and Schumpeter from an ontological and epistemological standpoint. More specifically, it addresses Popper and Hayek on the side of epistemological indeterminism as they theorized indeterminacy on the basis of the uncertainty of the future, and temporality in general, as well as the everchanging and always incomplete nature of knowledge, whereas it analyzes Bhaskar and Schumpeter as ontological indeterminists who saw indeterminacy as resulting from the nature of economic and social systems. The article’s conclusion is that epistemological approaches to the study of indeterminacy are bound to remain within a static framework and that an ontological reasoning is needed for a transition to a dynamic framework. In other words, the reasons lying behind discontinuity in economic systems can be found only within the inherent characteristics of those systems. Therefore, any economic analysis should start with a careful assessment of the social reality’s nature, because faulty assumptions about it will inevitably lead to disconnect between theory and practice.

It is known that almost none of the researchers from various disciplines who have worked in the field of business history have identified themselves as business historians. Perhaps the most noteworthy among these studies are the endeavors undertaken by economists with the aim of bringing economic theory and business history closer together. This study aims to assess the efforts of economist Joseph Schumpeter in establishing a connection between Business History and Economic History through his book titled Business Cycles. The study begins by first addressing the theoretical framework of the Concept of Economic Cycles. Subsequently, Schumpeter’s book İktisadi Devreler is examined, and the examples he provides from business history are evaluated in the contexts of cotton textiles, railways, steel, automobiles, electric power, factories, corporations, and the modern financial system. The study also explores the relationship between the methodology used by Schumpeter in his book and Business History. [ABSTRACT FROM AUTHOR]

Selecting a suitable approach to achieve sustainable economic growth, particularly in developing nations, has always been a central theme in economic research. Economists continually seek a universal factor driving this phenomenon. The theory of economic catch-up, rooted in the Schumpeterian school and informed by the developmental experiences of East Asia (South Korea, China, and Taiwan) offers a framework for understanding this growth and development. Since different sectors offer different potentials for developmental entry, selecting industries becomes a crucial question in transitioning from poverty to prosperity. Through an exploration of theoretical foundations and existing research, we've distilled four key indicators: technology life cycle, modularity of technology, explicit knowledge levels, and the extent of embodied technology transfer. These indicators serve as a framework for prioritizing and selecting industries in alignment with the catch-up approach. To determine priorities, we've assigned weights to these indicators using the hierarchical analysis method. Employing the PROMETHEE method to rank stock market industries in Iran, three industries emerged in the following order: computer and electronics, medical, optical, and measuring instruments, and automobile and spare parts. These findings provide a framework for identifying key industries in Iran's seventh development plan and industrial policy document, facilitating informed decision-making.

En la decada del 70’ y principios de los 80’, Paul Samuelson reformuló la predicción condicional establecida por Joseph Schumpeter en Capitalismo, socialismo y democracia reemplazando socialismo con populismo. Según Samuelson la “democracia populista” había logrado su mayor desarrollo en el Cono Sur. Observó a la Argentina como un caso paradigmático que probaba su teoría. La tesis de Samuelson establecía que una fuerte demanda electoral para igualdad y una antipatía hacia el negocio impedía el crecimiento económico y sostenido. En aquel entonces, Samuelson también afirmaba que las avanzadas economías Occidentales seguirían el mismo camino que Argentina, la revolución de Reagan y de Thatcher demostraron que estaba equivocado. Sin embargo, la emergencia populista en Europa y Estados Unidos hace que su reformulación de Capitalismo, Socialismo y Democracia sea plausible. El objetivo de este ensayo es revisar y establecer una crítica a la teoría de Samuelson y evaluar su relevancia y utilidad hoy.

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El ensayo analiza la naturaleza destructora del capitalismo desde el punto de vista ambiental. En primer lugar, examina el concepto de destrucción creadora, acuñado por el economista austriaco Joseph A. Schumpeter, proponiendo en su lugar el concepto de “creación destructora” para describir el impacto del capitalismo sobre el sistema Tierra. En segundo lugar, plantea que el Antropoceno y la Gran Aceleración constituyen ejemplos de una dinámica de creación destructora de tipo biofísica que caracteriza al capitalismo. En tercer lugar, sugiere la existencia de una creación destructora de tipo conceptual ligada al predominio de los conceptos de Desarrollo y Desarrollo Sustentable durante la segunda mitad del siglo XX. Finalmente, estudia los conceptos de Posdesarrollo y de transiciones post-capitalistas como formas de destrucción creadora dentro del capitalismo.

Copyright of Araucaria is the property of Araucaria-Revista Iberoamericana de Filosofia, Politica y Humanidades and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In recent decades, the rapid emergence of new political leaders capturing growing social discontent with populist promises has highlighted elements of the internal fragility of democracy. Schumpeter predicts such fragility in Capitalism, Socialism and Democracy, where, in analyzing thse "competitive struggle for the popular vote," he makes two assumptions that reverse the classical model of rational decision-making: the limited use of "conscious rationality" by voters and the potential unfairness of political leaders. These two elements introduce systematic distortions into the process of collective decision-making in democracy, suggesting a possible explanation for the rise of populism. Based on delegation, representative democracy must function despite the small amount of intellectual effort that most citizens put into forming their political opinions. Ideologies have historically functioned as implicit heuristics, allowing citizens to evaluate political facts, shape their expectations, and simplify political reasoning; as such, they have been the tools used by parties to give credibility to their programs while at the same time affiliating and polarizing the electorate. While they continue to serve as anchors for defining political identity, today's ideologies are fragmented and therefore less effective in supporting long-term programs and retaining voters; thus, keeping voters close to their political affiliation requires massive use of the media, and for emerging parties lacking strong identitarian values, a short-term political offer becomes less risky than formulating long-term political strategies. At the same time, the decline of classical ideologies makes any political commitment to long-term perspectives hardly credible to the electorate. This leads to an adverse selection process in which populist programs have a better chance of success than long-term policy programs. As a result, the role of the political leader as an entrepreneur is severely weakened. The competition for votes becomes unfair (since it is not based on the quality or plausibility of policy results), while at the same time the process of polarization disrupts the elements of mediation. The result is a process of democratic backsliding that can ultimately lead to a loss of trust in democracy. [ABSTRACT FROM AUTHOR]

Copyright of Matériaux et Techniques is the property of EDP Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This note reveals that while the monopolist has ideal incentives to innovate, consistent with Schumpeter's original hypothesis, the oligopolist's incentive to innovate is non-monotonic in its market share and approaches that of the monopolist in the limit as the number of identical firms grows large. Numerical simulations indicate that the incentive to innovate for the relatively efficient oligopolist exceeds 83% of that of the monopolist. These findings may help explain why the purported relationship between innovation and firm size has defied consistent empirical validation. [ABSTRACT FROM AUTHOR]

Innovation is a powerful driver of the evolution of firms and society. Innovation policy encourages people and firms to effectively carry out innovative activities. Thus, the objective of the article is to map the theoretical foundation that scientific research has used to study innovation and innovation policies. To this end, a bibliographical review on innovation from Schumpeter's perspective was presented, as well as some concepts on innovation and industrial policies. Furthermore, using the Scopus database, research was carried out on the topic "innovation policy". To present the results, three graphs were constructed to assist in the analysis, and two figures of bibliometric networks, using the VOSviewer software. After analyzing the 39 articles, it was concluded that 15,38% presented the Schumpeterian theory as a basis, and 58,97% used theories that originated from their thinking (evolutionary and neo-Schumpeterian school). This article showed that Schumpeter left a contribution to the study of innovation and innovation policy, with his theory, with new schools, and with new thinkers (new elements and foundations), so that this set of contributions strengthens the creation, diffusion, implementing and carrying out actions aimed at the industrial and innovative process, and the development of organizations and society. [ABSTRACT FROM AUTHOR]

Schumpeter's Capitalism Socialism, Democracy was typical of 1942 in being pessimistic about all three terms of its title. Socialism would come, he thought, but without liberalism. His historical evidence was necessarily imperfect in light of later scholarship. But so too is his economics, good in parts, but falling in with the pre-analytic vision of the "imperfections" of something called "capitalism," neither of which has held up well. The book later became popular because it had his characteristic breadth of scholarship, especially historical, but also his ironic stance on almost all issues. What's finally missing in Schumpeter's grim prognoses, largely falsified by events, is an acknowledgment of the power of language. Ideas, words, rhetoric, ideology, language games—indeed the world is governed, said another economist, by little else. Denying it is the paradox of the conflicted materialist writer: while denying rhetoric, he enacts it, for what purpose is unclear. [ABSTRACT FROM AUTHOR]

Background: The COVID-19 pandemic introduced disruption that crossed sectors, borders, and disciplinary boundaries. Among faith communities and religious leaders, numerous commentators have observed technological innovations in response to physical gathering disruptions. We outline a form of pandemic spiritual leadership that supports faith communities beyond digital innovation by combining original empirical research and a novel conceptual framework. Purpose: Our project examined innovation through a comparative study of how faith leaders adapt religious practices during a time of disruption. While existing research on congregational responses to COVID-19 has documented sustained technological innovation, our research argues that technological innovation is only one feature of a broader catalog of innovative practices. Methods: To generate a trans-national sample, we used purposive sampling in two distinct locations, Pacific Northwest United States and Aotearoa New Zealand. Although separated by culture and geography, a purposeful sample across these two contexts illustrated how spiritual leaders in post-Christian contexts similarly responded to the pandemic crisis. The research involved semi-structured interviewing of nineteen faith leaders from seventeen communities we observed undertaking creative adaption. A trans-national selection deepened understandings of the dynamism of the unfolding pandemic and how limits, experienced differently in diverse contexts, can be generative. Results: Our study identified six organizing practices: blessing, walking, slowing, place-making, connecting, and localizing care. We demonstrate how the presence of God is cultivated amid local letterboxes and neighborhood crossroads and argue for an intensification of the local as markers of pandemic spiritual leadership. These interrelated spiritual practices express features of Michel de Certeau's "pedestrian utterings," Joseph Schumpeter's "creative recombination" and Pierre Bourdieu's social theory. Working with Certeau, we describe pedestrian utterings as historic church practices reframed as everyday local practices. Working with Schumpeter, we describe how the six practices and the language of innovation used by participants express creative recombinations. Working with Bourdieu, we consider how disruption realigns social fields, including between individuals, congregations, and broader communities. Finally, amid social distancing, congregations proved to be an anchor in resourcing this pandemic spiritual leadership. Conclusions and Implications: These four theoretical foci and six localizing practices provide a conceptual framework for future research into spiritual practices and religious leadership in the wake of a crisis. Confinements in space and movement can be generative of spiritual practice. For religious leaders and organizations, the research informs the cultivation of concrete practices that can encourage communities of care as part of crisis preparation. For scholars and religious practitioners alike, while pandemics enforce social separation, pandemic spiritual leadership combines attention to the local and the particular, as new forms of in-place practice emerge to sustain faith communities. [ABSTRACT FROM AUTHOR]

US and EU trade relations exhibit a set of chronic and secularly unsustainable imbalances, in which new Schumpeterian leading sectors and catch-up growth create growing tension in the asymmetrical and somewhat hierarchical US–EU relationship. These imbalances exhibit two distinct cycles interrupted by a clear structural break in the 1970s and an emerging cycle after the 2008–2010 crises. Each cycle has seen rising US current account or trade deficits with Europe provoke some financial or political crisis. Each crisis produced a US-led solution producing even greater imbalances in the next cycle, with concomitant stress on the asymmetric US–EU relationship. The EU and particularly the northern eurozone economies typically have relied on export surpluses for growth. But relying on export surpluses for growth reinforces EU dependence on the US and the US dollar at a time when US domestic politics are increasingly hostile to trade deficits and tension with China is rising.

Aim. This paper models the dynamics of technological change through the competitive interaction of two firms. The duopolists strive to outperform each other by exploiting the two fundamental Schumpeterian forces of economic development: innovation and imitation. method. By extending over a number of periods a technological “limit-pricing model” (whereby the “learning-by-doing effect” is the source of the barrier to entry) and assuming that the two firms compete following one another in the role of innovator and imitator. As result, it is possible to trace out the paths followed by the market shares of both producers and to derive endogenously a unit cost curve characterizing the industry in the long run. conclusion. A further merit of the model presented herein is its representation of a “micro-macro transition phase” — viz., the passage from individual practice to industrial standard — through a simplified but, nonetheless, realistic depiction of behavioural routines.

This study examines the effect of technological innovation on economic performance. Solow's growth accounting measures the contribution of productivity to economic growth, but the active role of technological change in attaining economic growth is ignored. Kaldor emphasizes capital accumulation in technological process, but does not cover the dynamic process of technological innovation. Schumpeter explains the dynamic process by focusing on capital accumulation and efficiency. Following Schumpeter's view of innovation, we empirically analyze the dynamics of technological innovation measured in terms of capital turnover and return on sales. Capital turnover represents process and organizational innovation, and return on sales reflects product innovation. For the empirical analysis, a large panel data set of 445 Korean firms during the period 2000–2015 is used. The empirical study performs panel regression analysis by using fixed effects model, FGLS model, dynamic GMM model, and a split sample method. The empirical results support the positive relationship between technological innovation and profitability. [ABSTRACT FROM AUTHOR]

RESUMO O objetivo deste artigo é comparar os fundamentos de duas linhas teóricas que têm sido frequentemente usadas na economia política: a evolucionista e a regulacionista. A premissa básica é que essas duas linhas ainda estão intimamente ligadas aos seus respectivos pais: as obras de Schumpeter e Marx. Ou seja, tanto suas semelhanças quanto suas diferenças estão mais em seus códigos genéticos do que em suas adaptações ao ambiente em que se desenvolveram: microeconomia neoclássica e macroeconomia keynesiana e kaleckiana.

Because it is sensitive to natural, socio-political and economic hazards, and because it is impossible to store resources, tourism is a sector of activity that is potentially vulnerable to crises. The long-term historical approach, which could shed light on the strategies of a key player such as the hotel industry, has rarely been used. Despite the biases linked to the limited number of archives available for these private companies, it is possible to guess at the options they choose, knowing that a Breton hotelier is often not just a hotelier. In order to better understand the causes of the crisis, it is necessary to differentiate its various forms, as the actors adopt different behaviors. In the case of a geopolitical crisis (wars, for example), which is inevitable and irresistible, and whose cause is totally external to the tourist environment, the crisis has lesser consequences for the pluri-active establishments, which is to their advantage. In the case of a socio-economic crisis, whose cause can sometimes appear less brutal and which, above all, does not dry up the source of the tourist flows, the crisis leads the actors to make investment choices and, very often, leads to specialization. All these national and international crises between 1870 and 1970 were an opportunity for the Breton hotelier who managed to keep his business, to modernize his business and to come closer to the national hotel standards with which he was gradually confronted, until he conformed to them in the last quarter of the 20th century.

Explanations for slow global growth (secular stagnation) correctly focus on income inequality and wage formation but are incomplete. They ignore the source of wages and fail to ask why a rising profit share has not produced more investment. Older but essential insights on stagnation from Keynes, Schumpeter and Veblen complement orthodox and post-Keynesian analyses to generate a more robust explanation based on the distributional conflict over profit among firms. These thinkers highlight the importance of corporate profit strategy and organizational structure for investment behavior. A politically mediated process of strategic interaction has transformed the old Fordist dual industrial structure into a tripartite structure composed of high profit volume firms with monopolies based on intellectual property rights (IPRs), physical capital-intensive firms protected by an investment barrier to entry, and low profit volume labor-intensive firms. Profit data from Compustat and Orbis show that IPR-based firms have a lower marginal propensity to invest. Other firms with smaller profit volumes forego investment from fear of creating excess capacity in a slow growth environment. High profit firms also tend to pay higher wages, creating income inequality. Changes in antitrust, employment and intellectual property law can remedy this situation. [ABSTRACT FROM AUTHOR]

This article reinterprets Schumpeter's theory of entrepreneurship in a decidedly un-"Schumpeterian" way, and argues that continued emphasis on Schumpeter's alleged glorification of the entrepreneur constitutes a missed opportunity for democratic critics of capitalism and neoliberalism. I demonstrate that Schumpeter did not exalt the individual entrepreneur as the paradigm for economic and political leadership in capitalist societies, and I show that he offers a surprisingly robust resource for reconceptualizing entrepreneurship. Schumpeter theorized entrepreneurship: (1) as a phenomenon that could not be exemplified by either individual persons or strictly private entities; (2) as a conceptual mechanism for analyzing change in the history of capitalism; and (3) even as evidence that political and economic leadership should not be conflated in modern democratic societies. By contextualizing Schumpeter's discussions of the entrepreneur, I suggest that a reconsideration of Schumpeter's actual theory of entrepreneurship would invigorate contemporary debates about the role of leadership in capitalist economies and liberal-democratic polities. [ABSTRACT FROM AUTHOR]

This study aims to evaluate the ideas on the scope and method of economics of Joseph Schumpeter who is one of the important economists of the 20th century. The study consists of four sections: In the first section we underline the interesting points of his life to understand the roots, background, or 'vision' of his thought system. In the second section, we will examine his methodological views that he asserted in his first (but translated into English only in 2010) book. Third section will be concerned with his 'analysis of economics' which refers to his critics of Leon Walras's general equilibrium analysis (as static) and his own alternative (dynamics analysis of capitalist economies) about the central subject matter of economics. In the fourth section we will treat his approach about the development/evolution process of economic thought in time. The study concludes with a brief assessment: Schumpeter is one of the rare economists who can build his own thought system in the history of economics, and he embraced a pluralist perspective in the field of the methodology of economics.