Schumpeter's Split Between 'Pure' Economics and Institutional Economics: Why Methodological Individualism Was Not Fully Considered

While Joseph A. Schumpeter is classified as a pioneer of evolutionary economics in a wide sense and of entrepreneurship and innovation management in a narrower sense, Schumpeter is less known for his contributions in the area of scientific methodology and history of science. The paper deals with methodological premises in Schumpeter's scientific positioning. In 1908, in his Das Wesen und der Hauptinhalt der theoretischen Nationalokonomie, Schumpeter developed and pioneered his methodological individualism which is very much acknowledged. However, comparing these early positions with methodological writings in his History of Economic Analysis (1954) shows that he has not really shifted from methodological individualism to an institutional perspective that addresses the academic interplay and sees economic action rooted in historical predispositions, paths and social constraints. Keywords Methodological individualism * Institutional economics * Joseph A. Schumpeter * Economic methodology JEL B25 * B30 * B41 * F14 * F01 * F20 * O10
Introduction The paper deals with Joseph A. Schumpeter and his efforts to treat economics methodologically. Some authors argue that Schumpeter maintained his principal scientific positions over the course of his [...]