TITLE

How to make a dis-entrepreneur of the Schumpeterian entrepreneur: the impact of institutional settings on growth

AUTHOR(S)
Eusepi, Giuseppe; Wilson, Edgar
PUB. DATE
July 2008
SOURCE
Public Choice;Jul2008, Vol. 136 Issue 1/2, p39
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Fiscal and monetary institutions are conspicuously omitted in the conventional theory of long-run economic growth. Moving from the Schumpeterian entrepreneur, who adopts new technology because its value, according to Tobin’s q, dominates the economic rents of existing capital, we argue that the Schumpeterian entrepreneur’s incentives to innovate change when he is transplanted into the public economy. We analyze two alternative institutional settings denoted as “long chain” and “short chain”. Through the “long chain” model we show that the Schumpeterian entrepreneur is driven towards “destructive creation” of new capital, thus becoming a political dis-entrepreneur, while the quasi-contractual “short chain” model provides incentives to innovate.
ACCESSION #
32484727

 

Related Articles

  • The Observational Implications of Schumpeterian Growth Theory. Aghion, Philippe; Howitt, Peter // Empirical Economics;1996, Vol. 21 Issue 1, p13 

    This paper obtains and discusses alternative testable implications of the Schumpeterian theory of creative destruction for economic growth.

  • A general model of the innovation - subjective well-being nexus. Engelbrecht, Hans-Jürgen // Journal of Evolutionary Economics;Apr2014, Vol. 24 Issue 2, p377 

    A model of the innovation - subjective well-being (SWB) nexus is needed to advance our understanding of the welfare implications of innovation. Building on an earlier contribution by Swann (G. M. Peter Swann, 2009, The Economics of Innovation, Edward Elgar, Cheltenham, UK), I first assemble the...

  • Discovering Creativity in Necessity: An Examination of the Inverse Creative Destruction Effect. Monllor, Javier; Altay, Nezih // International Council for Small Business. World Conference Proce;1/1/2013, preceding p1 

    The article examines the alertness to post-disaster entrepreneurial opportunities and the creative destruction impact of natural disasters on small businesses. Topics discussed include the relationship between entrepreneurial innovation and disasters, the recovery planning efforts through the...

  • STUDY OF ECONOMIC FEASIBILITY OF RESOURCE SAVING TECHNOLOGIES INTRODUCTION AS A FACTOR OF ENTERPRICES' ECONOMIC DEVELOPMENT. Kozyk, V. V.; Petrushka, T. O.; Yemelianov, O. Yu. // Scientific Bulletin of National Mining University;2013, Issue 4, p134 

    Purpose. Development of theoretical and methodical principles for the study of economic feasibility of resource saving technologies introduction as a factor of enterprises' economic development. Methodology. The following methods of research have been used: generalization, system analysis,...

  • HUNGARY AND THE NEIGHBOURING COUNTRIES' INNOVATION POSITION BASED ON EUROPEAN DATA. Sitanyi, Laszlo // Interdisciplinary Management Research;2010, Vol. 6, p887 

    With the present study I wanted to achieve three goals. Based on the secondary analysis - carried out in summer 2009 - of the data of the "European Innovation Scoreboard" between 2000 and 2008 I wanted to point out the importance of social capital, which among others has a significant role in...

  • Learning from the Silicon Valley and implications for technological leapfrogging. Malairaja, Chandra // International Journal of Technology Management & Sustainable Dev;2003, Vol. 2 Issue 2, p73 

    Innovation plays a crucial role in the evolution of high-tech clusters which are invoked as a strategy for sustainable industrialisation and economic growth. Over the last five decades, the Silicon Valley in California has emerged as the most successful high-tech cluster in the world. Not...

  • Individual foundings and organizational foundings: their effect on employment growth in The Netherlands. Koster, Sierdjan // Small Business Economics;May2011, Vol. 36 Issue 4, p485 

    This study addresses the question of whether different types of new firm formation have different impacts on regional employment generation. It is shown that new establishments of existing firms, i.e., organizational foundings, have a mainly short-term positive effect. In contrast, genuinely new...

  • RENESANSA SCHUMPETROVE RAZVOJNE TEORIJE. Rihtarič, Mira // Our Economy (Nase Gospodarstvo);2008, Vol. 54 Issue 1/2, p28 

    More than half a century after his death, Schumpeter still remains a source of scientific debate on major economic and social issues and methodology, and on empirical research on economic dynamics and technical change. Keynes put his mark on economic theory and economic policy during the last...

  • Productivity, creative destruction and innovation policy: Some implications from the Australian experience. Foster, John // Innovation: Management, Policy & Practice;Dec2010, Vol. 12 Issue 3, p355 

    It is argued that a Schumpeterian evolutionary economic perspective offers a better understanding of the determinants of economic growth and its tendency to fluctuate. Consistent with Schumpeter's view, entrepreneurship is identified as the key driver of economic growth. But in complex, ever...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics