Gales Of Creative Destruction Research Articles

Updating Schumpeter’s Gales of Creative Destruction: Exploiting the Vulnerability of New World Order Corporate Globalism With Regional Blockchain Entrepreneurial Economic Growth

Updating Schumpeter’s Gales of Creative Destruction: Exploiting the Vulnerability of New World Order Corporate Globalism With Regional Blockchain Entrepreneurial Economic Growth

Schumpeter, Creative Destruction and the American Economy

The world is experiencing the age of Schumpeter and the American economy remains the premier example of a Schumpeterian economy. Despite its many naysayers and the doom and gloom professors that never stop predicting its demise, the American economy continues to show a remarkable capacity to rejuvenate. Orwell once commented that “England is perhaps the only great country whose intellectuals are ashamed of their nationality.” Left-wing intellectuals, he argued, hasted the divorce between intelligence and patriotism, which weakened the country’s morale and emboldened its enemies. Left-wing intellectuals, he argued, hasted the divorce between intelligence and patriotism, which weakened the country’s morale and emboldened its enemies. If he were alive today, it would be interesting to hear his opinion about the relentless barrage of criticism against everything American. One thing seems sure, though, America, not England, is the country most hated by its intellectual class. Any talk about Schumpeter’s “gale of creative destruction” is anathema to these “critical critics.” After all, when it comes to everything American, these individuals believe that they must criticize for the sake of criticism. The thought that capitalism has an internal mechanism akin to a fountain of youth must be disheartening to those whose blinders prevent them from accepting opposing facts. Frightenedly, these same intellectuals are apologists for every dictatorship the world over.

Slouching toward an illusion and scurrying toward a delusion: A COVID19-shocked doughnut model economy

Abstract. An easy way of observing and predicting changes in the structure and behavior of any free-market economy is to track changes in its circular flow model of economic activity. Using book titles as a literature review in combinations with a few classics, I describe how the circular flows of free -market economies evolved from little, gentle, and now nearly powerless government role, culminating in super-duper capitalism. First the evolution generated great wealth and income, and of late also increasing inequality. Processes like globalization that allowed for economic convergence also spurred enormous tensions. The resulting stresses and strains are responsible for unpopular populism and nationalism. The doughnut economic model provides a reasonable framework for explaining what we observe. It shows a decline in the social foundations of human rights, made worse by breaches in the “planetary boundaries” both of which squeeze the livable space ever more tightly like a boa-constrictor suffocating its prey. In this paper I do not go as far as measuring my observations, but the directions for policy and future research have clearly been established. Regarding the latter, one may want to examine how COVID19 has shocked into scurrying towards a delusion of a system that was already slouching towards an illusion. It turns out that the illusion is not a new prediction. In his critique of Marx and rationalization of Kondratieff’s waves (K-waves) Schumpeter predicted that capitalism as an innovation is not immune to the “gale of creative destruction.” Keywords. Circular flow model, Doughnut economic model, Social foundations of human rights, Inclusive and sustainable development, Planetary limits, Unpopular populism, Super-duper capitalism. JEL. O47, O33, E19, Z0.

Early adoption in an agile online teaching environment

The Covid-19 pandemic has blown through the Higher Education sector like a Schumpterian ‘gale of creative destruction’ (Schumpeter, 1934), accelerating the pace of change, disrupting entrenched pedagogical approaches, and revealing glimpses of the future of teaching. This study identifies how university-based early adopters responded to this ‘gale,’ successfully implementing the rapid change required to pivot to online teaching while addressing institutional requests to support the reluctant majority. Adopting an innovative interdisciplinary framework, this study advances understanding about the criticality of early-adopter behaviour in implementing change. The triggers, dynamics and impact of early-adopter behaviours are identified, as are the resultant implications for institutions for resourcing, recognising, and rewarding early adopters. The research design is underpinned by polyphony (Belova, 2010). Theoretical aspects from entrepreneurship (Stevenson, Roberts & Grousebeck, 1989) and networked learning (Dohn, Cranmer, Sime, De Laat & Ryberg, 2018) are also incorporated, relating early adopter behaviour to the entrepreneurial process in the context of virtual learning communities. This study uses vignettes from early adopters who have pivoted to online teaching in a university, identifying their experiences of instigating and supporting change. The findings highlight the facilitators of, and constraints on, early adopter behaviour, identifying the contextual characteristics necessary to challenge preconceived institutional notions and develop intrapreneurial mindsets that more readily support and implement early-adopter behaviours.

Time to exit: \u201crevolving door effect\u201d or \u201cSchumpeterian gale of creative destruction\u201d?

Over the past decades, exit has been analyzed at the theoretical and empirical levels. From this rich series of contributions, two basic patterns of exit can be identified: the revolving door and the gale of creative destruction. In the first, the liability of newness plays a major role in the exit process, while in the second the displacement of non-innovators is the driver of exit. We have tested these two patterns of exit on the population of Dutch firms that exited in 2018. We find confirmation that the two patterns characterize different types of industries. In industries in which innovation does not play a major role, the revolving door effect is the typical pattern and exit is concentrated among the adolescent firms. These firms are also small in size. On the contrary, in industries in which innovation plays a role, exit takes place both among infant as well as mature firms. Exiters are not necessarily only the smaller firms. While a highly innovative and uncertain environment can threaten the survival of infant firms, the exit of mature firms is driven by the innovation of young firms, following the gale of creative destruction.

Gales, Streams, and Multipliers: Conceptual Metaphors and Theory Development in Business History

Conceptual metaphors, like Galambos and Amatori’s “entrepreneurial multiplier,” play a pivotal but largely unexamined role in historical interpretation. They do this by allowing historians to see one set of historical associations or relationships in terms of another, more familiar, one. I highlight this interpretive role by comparing Galambos and Amatori’s construct to Joseph Schumpeter’s “gale of creative destruction” and Arthur Cole’s “entrepreneurial stream” as metaphors that attempt to explain the relationship between entrepreneurship and historical change. I also point out the risks that taken-for-granted metaphors can have in narrowing room for interpretation, and argue that reflexivity and playfulness are essential to keeping conceptual metaphors alive as interpretive devices. I conclude by suggesting that metaphors are an intrinsic form of theorizing in historical interpretation, and illustrate my argument by briefly examining “industrial revolution” as a construct in business and economic history.

Above-Normal Growth of Innovative Nomads in the Perennial Gale of Creative Destruction

Our analysis of U.S. patents shows that the numbers of patents owned by firms follow a power-law distribution–many firms only have tens or hundreds of patents, whereas a handful of firms have more ...

Brecht’s Gale

What can Marxist dialectics tell us about theatrical innovation? ‘Innovation’ saturates the world of contemporary performance, even though what the term actually means is anything but self-evident. This essay contrasts two ways scholars theorise theatrical innovation, one which owes to the work of the economist Joseph Schumpeter and the other to Bertolt Brecht. Whereas Schumpeter thought of innovation in terms of a “gale of creative destruction” that renovates capitalist society and its institutions, Brecht’s theory of innovation–what I call “Brecht’s gale”–described the measures artists must take to transform theatre into a weapon of anti-capitalist struggle.For theatre scholars and artists, distinguishing between Schumpeter’s gale and Brecht’s gale can throw into relief the aspirations we pin on theatrical innovation. To demonstrate this I turn to ongoing debates around the politics of postdramatic theatre, and take the 2015 production of Simon Stephen’s Carmen Disruption at London’s Almeida Theatre as a case study. For some, the formal innovations that define postdramatic theatre separate it aesthetically and politically from dramatic theatre in radical ways. Yet celebrations of postdramatic theatre’s political function draw attention away from its social function. To date, theories of postdramatic theatre tell us little about the role postdramatic theatre plays in capitalist society. Instead scholars posit postdramatic theatre as the creative destruction of dramatic form, out of which theatre is renovated to suit the shifting demands of capitalist society. By drawing on Brecht as well as Marxian value-form theorists like Chris Arthur and Michael Heinrich, I offer a Marxist critique of postdramatic theatre, one that insists on the role aesthetic and political innovation play in capitalist reproduction.

The Schumpeterian Cost of Regulation on Entry and Innovation: The Case of Bail Bonds

Entrepreneurship is valued in part because it stimulates Schumpeter’s gale of creative destruction. A popular view, reinforced by recent empirical work on regulatory reform, is that regulation inhibits entrepreneurship and innovation. However dismantling regulation is ill-advised, since generally regulation has primary goals other than to increase innovation. We study the impact of regulation on entry and innovation in such a setting, the bail bond industry. We build structural models of the entrepreneur’s entry decision and the incumbent’s continuation decision, then employ recovered parameter estimates in counterfactual policy environments that allow us to compare the impact of different regulatory regimes. Results from this exercise indicate that a combination of entry and operating regulations reduces entry yet increases innovation relative to a setting with no regulation. These benefits are above and beyond the intended benefits of the regulations. Our results suggest it is possible to design regulat...

10.5937/sjm9-6257 = Entrepreneurs of the future

Entrepreneurs are the gale of creative destruction. They are the engines of the local economy and contribute to a country’s wealth to a great extent. Accordingly it is of utmost importance, to create – educate and motivate – young adults to become entrepreneurs and start their own enterprises. The article summarises the basic facts about the Hungarian entrepreneurs’ and small and medium sized companies’ significance, and introduces a research on personal entrepreneurial competencies. The aim of the research is to explore the entrepreneurial potential of students in tertiary education, since they are the entrepreneurs of the future. In the research 470 young adults’ (students of tertiary education) responses are compared with those of successful entrepreneurs. According to the results successful Hungarian entrepreneurs produced better results on the personal entrepreneurial competencies test, scoring in most cases higher than the members of the student sample. In addition to this, patterns based on age, gender and work experience could be identified.

The Schumpeterian Cost of Regulation on Entry and Innovation: The Case of Bail Bonds

Entrepreneurship is valued in part because it stimulates Schumpeter’s gale of creative destruction. A popular view, reinforced by recent empirical work on regulatory reform, is that regulation inhibits entrepreneurship and innovation. However dismantling regulation is ill-advised, since generally regulation has primary goals other than to increase innovation. We study the impact of regulation on entry and innovation in such a setting, the bail bond industry. We build structural models of the entrepreneur’s entry decision and the incumbent’s continuation decision, then employ recovered parameter estimates in counterfactual policy environments that allow us to compare the impact of different regulatory regimes. Results from this exercise indicate that a combination of entry and operating regulations reduces entry yet increases innovation relative to a setting with no regulation. These benefits are above and beyond the intended benefits of the regulations. Our results suggest it is possible to design regulations without imposing the Schumpeterian cost on innovation, and provide preliminary indications of how to accomplish this. Moreover our results suggest that Schumpeterian cost itself may need to be redefined. Entry and innovation actually oppose one another in our setting. Not only does excess entry steal share, in so doing it also suppresses incentives to innovate.

The kaleidic world of entrepreneurs

Purpose – Austrian economics figures centrally in organizational entrepreneurship research. However, researchers have focussed almost entirely on the Austrian school's “gales of creative destruction” and “entrepreneurial discovery” metaphors, which are rooted in equilibrium assumptions and thus downplay the more subjective and dynamic aspects of entrepreneurship. The purpose of this paper is to question such assumptions, proposing instead a “kaleidic” metaphor drawn from the radical subjectivist strand of Austrian economics. The paper develops, grounds, and enriches the theoretical concepts this metaphor embodies in order to advance the general understanding of entrepreneurship as a radically subjective, disequilibrium phenomenon, as well as the specific knowledge of entrepreneurs’ career and venture experiences. In doing so, the paper highlights creative imagination as a wellspring of entrepreneurship. Design/methodology/approach – The paper employs a case study design to inductively develop the theoretical concepts embodied in the kaleidic metaphor and deductively ground them in the accounts 12 entrepreneurs provided about their career and venture experiences. The paper employs symbolist methods to develop thicker descriptions, generate alternative understandings, and facilitate richer interpretations. Moreover, the paper adopts a reflexive approach in considering the study's implications. Findings – The results suggest the kaleidic metaphor comprises five overarching ideas that resonate, often very strongly, with entrepreneurs. Originality/value – The study is the first to theoretically develop and empirically ground the ideas the kaleidic metaphor embodies. The paper contributes to a growing body of conceptual work and joins a handful of empirical studies by organizational entrepreneurship scholars using the radical Austrian perspective.

How to evaluate creative destruction: reconstructing Schumpeter's approach

Economic change, while promoting innovation and growth, at the same time generates 'gales of creative destruction'. It is still largely unclear what this concept implies for the task of assessing welfare (and, correspondingly, the need for and the scope of policy making) in a novelty-generating, knowledge-based economy. Is novelty desirable per se? Is a rise of living standards due to innovation always worth the risks involved? Standard welfare economics is inherently incapable of answering these questions. By examining Joseph Schumpeter's explicit and implicit reasoning on welfare and linking his thoughts to recent ideas, within normative economics, on how to redefine 'well-being' when preferences are variable and inconsistent, we argue that in an evolving economy, well-being should not be conceptualised in static preference-satisfaction terms, but rather in partly procedural terms of 'effective preference learning'. Copyright , Oxford University Press.

Labour Landmarks in New Brunswick / Lieux historiques ouvriers au Nouveau Brunswick (review)

Reviewed by: Labour Landmarks in New Brunswick / Lieux historiques ouvriers au Nouveau Brunswick Steven High Labour Landmarks in New Brunswick / Lieux historiques ouvriers au Nouveau Brunswick. David Frank and Nicole Lang. Edmonton: Canadian Committee on Labour History, 2010. Pp. 111, $10.00 Labour Landmarks / Lieux historiques ouvriers is one of the many public history outcomes of a remarkable Community-University Research Alliance project that has sought to reconnect New Brunswick residents with their labouring past and present. The public memory of the work lives and activism of trade unionists is often peripheral to our understanding of ourselves as a people. The gales of creative destruction that rage around us risk cutting this connection altogether, as mills close and jobs are lost. Too often, cultural erasure follows. One need only search for signs of Moncton’s railway past to realize [End Page 157] the extent of this removal. To (re)insert working people into public memory in the twenty-first century is therefore a highly political act. For the past five years, the Labour History in New Brunswick Project – which includes university researchers, trade unionists, and heritage activists – has sought to make the history of work and labour in New Brunswick ‘more accessible to the academic community and the general public’ (http://www.lhtnb.ca). In seeking to draw attention to working-class history, the research project aims to validate the contribution of working people and to find strength in common struggle. Team members have done this in a variety of ways, producing illustrated brochures, encyclopedia entries, museum exhibitions, pedagogical materials, as well as scholarly writings. ‘Labour landmarks’ is in one of the project’s five major research areas, this bilingual book being the culmination of five years of research. David Frank and Nicole Lang indicate that there has been a relatively unrecognized tradition of commemoration in regard to the contribution and sacrifice of New Brunswick labour. As a result, Labour Landmarks / Lieux historiques ouvriers tours fifty sites of memory where ‘families, workers, unions and communities have recognized the place of workers in 20th-century New Brunswick history.’ The focus here is on plaques, memorials, and statues rather than murals, public art, or the built environment. The labour landmark idea originates in the work of Archie Green, though James Green has clearly been influential as well. The book is filled with site-specific stories related to New Brunswick’s coal miners, loggers, fishers, firefighters, and railway workers. In the coal mining chapter, for example, we learn about the death of three boys who climbed into an abandoned Minto coal mine in 1932. Two of their would-be rescuers also died. After three hundred years of coal mining, the area’s land and people are marked by this shared legacy. Other labour landmarks celebrate the achievements of provincial trade unionists or mark the dangers of work. Some landmarks, like the world’s largest axe in Nackawic, have become symbolic sites of worker protest in the face of the crisis in forestry. According to Frank and Lang, ‘the labour landmark in New Brunswick points to a kind of unofficial public culture that owes its existence to local initiatives and support’ (90). In many ways, the book weaves these local stories together – marking the place of workers in New Brunswick history. Rather than an exhaustive inventory of sites, Labour Landmarks / Lieux historiques ouvriers provides us with an introduction aimed at the general public. The combination of photographs and text work well together. All of these sites are also indicated on a colour map [End Page 158] located in the final pages. If I had a critique of the book, it is its design: it is made to be read at home rather than on a road trip while visiting these labour landmarks. There are thus no specific instructions on how to find each of these fifty landmarks. I also think that the project might have made a stronger connection between the book and its website. There is a section on labour landmarks on the project website, but there are only a handful of unmapped descriptions at the moment. The website does allow online visitors to submit additional labour landmarks, but it is unclear how...

Firm Age and Survival

Firms typically do not make it to old age. We want to know whether the deterioration in performance they experience eventually drives older firms into financial failure. We find that not to be the case. Conditionally and unconditionally, the failure hazard declines as firms grow older. The competing hazard of takeover initially declines as well, yet it increases with age eventually. On average, and consistent with Schumpeter’s gale of creative destruction, older firms are therefore more likely to be absorbed and recycled in other organizations. However, there is little evidence of survival of the fittest at old age, since poor performance and inefficient cost structures actually reduce the takeover hazard of old firms. New assets and plenty of cash have the same effect. It looks as if old clunkers have trouble finding merger partners. We also provide novel evidence about how industry characteristics affect both hazards of financial failure and takeover.

Government Structure and the Political Economy of Technological Innovation

Are decentralized states better at technological innovation than centralized states? Economic and political theorists, from Hayek to Mokyr, suggest that government decentralization offer advantages for innovators. Decentralized governments are widely seen as agile, competitive, and well structured to adapt to innovation's gale of creative destruction. Meanwhile, centralized states, even when democratic, are subject to capture by status-quo interest groups which use their influence to promote policies which ultimately restrict long-run technological change. Therefore decentralized government is increasingly perceived as a necessary institutional foundation for fostering long-run technological innovation. I test this theory using data on international patent activity, scientific publications, and high-technology exports.

Political Decentralization and Technological Innovation: Testing the Innovative Advantages of Decentralized States

AbstractAre politically decentralized states better at fostering long‐run technological innovation than centralized states? Societies with decentralized governments are widely seen as agile, competitive, and well structured to adapt to innovation's gale of creative destruction. Meanwhile, centralized states, even when democratic, have come to be viewed as rigid and thus hostile to the risks, costs, and change associated with new technology, or prone to cling too long to foolhardy or outdated technological projects. Therefore government decentralization is often perceived as a necessary institutional foundation for encouraging long‐run technological innovation. However, in this article, I analyze data on international patent activity, scientific publications, and high‐technology exports, and show that there exists little evidence for an aggregate relationship between government structure and technological innovation.

Gales of creative destruction and the opportunistic incumbent: The case of electric vehicles in California

This paper explores the introduction of electric vehicles in response to Californian regulatory pressures as an example of a disruptive technology. The central thesis is that this disruption may open the automobile market to new entrants but only if they collaborate with incumbent automobile manufacturers. This appears to support Schumpeter's argument that large incumbent firms possess innovation advantages over the small entrepreneurial entrant. However, these innovatory advantages lie in the downstream complementary assets required for success in the automobile market.

THE SCHUMPETERIAN STRUCTURAL ADJUSTMENT OF THE BANKING INDUSTRY: A POST FINANCIAL CRISIS ANALYSIS

This paper discusses the economic growth and technological change of the Thai banking industry in relation to a post financial crisis, based on Schumpeter's economic development theory. It is argued that the structural changes of the Thai banking industry reflect Schumpeter's gales of creative destruction. The circumstance in which Thailand has to let the ailing banks and financial institutions go bankrupt and renew the process of growth through mergers and acquisitions represents an adjustment phase of an economy undergoing technological change. Using Porter's Competitive Forces Model, this paper aims to understand banks' pursuit of strategies to survive and increase competitiveness under the financial liberalization policies. The paper concludes with policy recommendations for the Thai banking industry to manage innovations under a competitive pressure after the financial crisis.

Evolving Technologies and Market Structures: Schumpeterian Gales of Creative Destruction and the United Kingdom Internet Service Providers’ Market

(2004). Evolving Technologies and Market Structures: Schumpeterian Gales of Creative Destruction and the United Kingdom Internet Service Providers’ Market. Journal of Economic Issues: Vol. 38, No. 3, pp. 629-657.