Posted on 06/26/2010 5:54:05 AM PDT by TigerLikesRooster
Schumpeter 2.0
By Richard Swedberg and Thorbjørn Knudsen
Wednesday, June 23, 2010
Filed under: Big Ideas, Economic Policy A great thinker’s contribution not only appears in his or her finished works and arguments, but also within the rich intuitions or core ideas that underlie the arguments.
During the last decade or so, the theories of Joseph Schumpeter have gone through a revival, and much attention has been devoted to his work. By now many economists and commentators value his work highly, especially what he says about entrepreneurship and creative destruction.
While this work on Schumpeter is very valuable, one might also adopt a different attitude towards him. Instead of trying to explicate and apply his ideas, one may more freely use Schumpeter’s intuitions to construct new theories and approaches to economic topics.
Two Key Intuitions: The Notions of Combination and Resistance to Entrepreneurship
Two of Schumpeter’s core ideas, present already in the first edition of his great classic, The Theory of Economic Development (1911), are the notions of combination and resistance to entrepreneurship. Individually, these are potent ideas. Together, they are even more so and can produce a new (Schumpeterian) theory of entrepreneurship.
Two of Schumpeter’s core ideas are combination and of resistance to entrepreneurship.
The notion of combination stands at the center of Schumpeter’s theory of entrepreneurship. Indeed, he famously defines
(Excerpt) Read more at american.com ...
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Excellent and thanks for the ping.
Schumpeter is great. Entrepreneurship is hard and that’s why government regulation and control of markets is so degrading. It is not worth the risk to innovate.
Furthermore, small business accounts for 25 to 1 job growth when compared to big business. Without small business creation you don’t have job growth.
Can somebody forward this to Obama’s economic team?
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