Behavioral influences of bureaucratic organizations and the Schumpeterian controversy

Abstract

The behavioral influences of large bureaucratic organizations that were noted by Schumpeter would seem to weigh heavily against the plausibility of the Schumpeterian hypothesis that large corporations are more powerful engines of technological innovations than small competitive firms. But those influences also offer clues about how cultural differences between the United States and Japan resulted in large Japanese corporations in the later post-WWII era conforming closely to the Schumpeterian hypothesis.