Joseph Alois Schumpeter, Biography: The Concise Encyclopedia ...
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Saved by 2 people (0 private), first by anonymouse user on 2008-02-11
- Elserenito on 2008-09-10 - Tags schumpeter
- Brianddrpm on 2008-02-11 - Tags creative-destruction , economics , entrepreneurship , innovation
Public Sticky notes
that Leon Walras was the greatest economist of all
time.
Highlighted by elserenito
Schumpeter believed that capitalism would be destroyed by its successes.
Capitalism would spawn, he believed, a large intellectual class that made its
living by attacking the very bourgeois system of private property and freedom so
necessary for the intellectual class's existence.
Highlighted by elserenito
Indeed, Schumpeter was among the first to lay out a clear concept of entrepreneurship. He distinguished inventions from the entrepreneur's innovations. Schumpeter pointed out that entrepreneurs innovate, not just by figuring out how to use inventions, but also by introducing new means of production, new products, and new forms of organization. These innovations, he argued, take just as much skill and daring as does the process of invention.
Highlighted by brianddrpm
led to gales of "creative destruction" as innovations caused old inventories,
ideas, technologies, skills, and equipment to become obsolete.
Highlighted by elserenito
Under perfect competition all firms in an industry produced the same good, sold it for the same price, and had access to the same technology. Schumpeter saw this kind of competition as relatively unimportant. He wrote: "[What counts is] competition from the new commodity, the new technology, the new source of supply, the new type of organization... competition which... strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives."
Highlighted by brianddrpm
Most economists accept the latter argument and, on that basis, believe that companies should be able to keep their production processes secret, have their trademarks protected from infringement, and obtain patents.
Highlighted by brianddrpm
on 2008-02-11 by brianddrpm
The question, especially in the digital age, is how long and under what conditions such a monopoly should be extended.
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