Schumpeter Research Articles

How to see the world economy: statistics, maps, and Schumpeter's camera in the first age of globalization

AbstractHow we assess globalization is largely determined by how we see the world economy. This article follows a disagreement about how to see the world economy among economists in Germany and Austria in the first age of globalization from the 1870s until the First World War. Absorbing metaphors from contemporary developments in media technologies, the debate pitted historical economists, who used statistics and cartography to make visible what they called the ‘world economic organism’, against marginalist economists, including a young Joseph Schumpeter, who rejected panoramic descriptions of the world economy for a narrow focus on prices. In a forgotten chapter in the conceptual genealogy of globalization, the debates of German-speaking economists initiated a persistent divide in how to see the world economy: either in the spatially expanding networks of communication and trade or in the wandering movement of prices on the world markets.

Schumpeter and the Roots of Methodological Individualism

"Methodological individualism" (MI) was first used in English in a 1909 paper by Joseph Schumpeter. MI is often invoked as a fundamental description of the methodology both of neoclassical and Austrian economics, as well as of other approaches. However, the methodologies of those to whom the theoretical practice of MI is ascribed differ profoundly on the status of the individual, some adopting an atomistic and others a more organicist standpoint. Considering the contributions of Joseph Schumpeter, the paper finds that he recommends a highly atomistic approach.

Neoklassischer Marxismus?

A couple of years after the outbreak of the financial crisis, a discussion about money creation from a political economy perspective has finally been initiated again, analyzing the interaction between commercial and central banks. Neo-Marxist approaches, though, are to a large extent unaffected by this discussion – which is based on Joseph Schumpeter’s Theory of Economic Development (1911) – or even completely reject the idea of a money-creation out of nothing. Two Neo-Marxist articles are exemplary of this deficit of monetary theories. On the one hand, the influential book Political Economy of Financial Markets (1999) by Jörg Huffschmid, which has constituted the paradigm of capitalism being driven by financial markets. On the other hand Political Economy of Money (2012) by Stephan Krüger, which assumes that the value of money is still based on the respective production of gold. Consequently, these approaches unintended trigger an adherence to the Neoclassical dichotomy of „real economy“ and „monetary sphere“, albeit with different rationales.

The Psychiatry of Entrepreneurship

Entrepreneurship represents among the most complex of human mental activities, requiring a multitude of higher orders of functioning, such as motivation, endurance, resiliency, confidence, intelligence, leadership, agility, creativity, and innovation. Entrepreneurs envision in their minds the possibility of a future state, and work to actualize that vision into reality. The economist Joseph Schumpeter provided key contributions to entrepreneurship theory which are still applicable today, when he introduced two fundamental ideas: that innovation drives the growth of economies and of capital markets, and the person responsible for this innovation is the entrepreneur [1]. These Schumpeterian qualities of starting a venture by innovating and having the desire to grow serve as the distinguishing characteristics that identify an entrepreneur, in contrast to those individuals who work in already-established businesses or in self-employment settings where there are no plans for scalability [2]. The rise of the Internet in the 1990s followed by the evolution in the 2000s of the next wave of innovations including mobile technology, social networking, and cloud computing has created new frontiers at the interface of health and entrepreneurial activity. The Global Entrepreneurship Monitor 2013 United States Report estimates that in 2013, there were 25 million Americans starting up or working in new businesses, with about 13 % of the US working population doing these activities [3]. Entrepreneurship is generally recognized on the global scale as being central to the development and sustainability of economic prosperity, geopolitical stability, and improved standards of living. Understanding the mental health challenges in entrepreneurship can promote wellness both at the individual level and also grow alongside the ventures to have societal impact far beyond the scale of any single person.

Leading the (r)evolution: Succession and leadership rules for re-entrepreneurs

During the next decade-plus, thousands of Baby Boomer entrepreneurs will retire, usually without formal succession plans. Next-generation relatives, former employees, or outsiders will assume leadership of these now-mature enterprises, hopefully bringing their own visions and initiatives and becoming, in every sense, re-entrepreneurs. Re-entrepreneurship describes a process through which a mature enterprise can be made new again. Re-entrepreneurial leaders will encounter challenges that differ radically from those confronted by traditional entrepreneurial leaders. Re-entrepreneurial initiatives necessarily should begin with new visions of what mature organizations might do to become new again; will succeed only if stakeholders commit to that vision; and should culminate with reimagined, restaged, and revitalized enterprises. To secure re-entrepreneurial outcomes, three framing principles are proposed. Each principle is rooted in the theory of Joseph Schumpeter, the godfather of entrepreneurism and creative destruction. Seven re-entrepreneurial rules follow. While grounded in entrepreneurial theory, each rule is based primarily on experiential lessons shared by re-entrepreneurial executives who have previously assumed leadership succession roles inside mature organizations—and subsequently reimagined, restaged, and revitalized, ultimately renewing their firms.

Collaboration vs. Imposition as Motifs for a Theory of Public Finance: Transcending the Goldscheid-Schumpeter Debate

This essay is written for a Festschrift to commemorate Jurgen Backhaus’s contributions to political economy on the occasion of his retirement from the University of Erfurt. Jurgen is a penetrating and wide-ranging scholar from whom I have learned much since we first met in 1974. It would be easy to write a book to commemorate the numerous paths of influence and insight I have received from Jurgen. But I have only this paper through which to offer my commemoration and I have chosen a topic that arose at our very first meeting. That topic was the debate between Joseph Schumpeter and Rudolf Goldscheid regarding different approaches to the discharge of Austria’s public debt at the end of the First World War and the breakup of the Austro-Hungarian Empire. That point of departure leads quickly into a consideration of divergent approaches to the theory of public finance, and particularly the conceptualization of capital accounts for political entities and the place of political presuppositions within a theory of public finance.

Schumpeter's entrepreneurs in the 20th century: The Tucker automobile

The purpose of this paper is to analyze Schumpeter's concept of entrepreneurship applied to the example of Preston Tucker, the American automobile designer who conceived the Tucker 48, which was briefly produced in Chicago in the late 1940s.Despite this paper addresses the first attempts of economics to comprehend and explain the role of the entrepreneur, it will focus primarily on the theoretical approaches on entrepreneurship and economic innovation developed by Joseph Schumpeter in the beginning of the 20th century.Moreover, the paper will analyze a particular example of such entrepreneurship by understanding how innovative industrial concepts and ideas may lead to a destructive creative process, which ultimately may result in new industries and businesses.Finally, taking Tucker's example as a benchmark the paper explores Schumpeter's theories regarding the role of the entrepreneur in disturbing the monotonous flows of the markets.

Tracing the Origins of Personalist Economics to Aristotle and Aquinas

Personalist Economics has identified a central problem in Neoclassical Economics that originates in its representation of the economic agent as homo economicus and its grounding in individualism. Both flaws are directly addressed by Personalist Economics that has a different perspective on human nature as set forth in Personalism. Our remarks are presented in three sections. In the first section we address why individualism is an unsatisfactory philosophical foundation for modern economic theory. In the second section we trace the origins of Personalist Economics to Aristotle and Aquinas. While others, such as Heinrich Pesch and Joseph Schumpeter, played important roles in the evolution of Personalist Economics, here our efforts are restricted to the contributions of Aristotle and Aquinas. In the third section we explore how, in terms of 18 tenets, Personalist Economics and a Personalist economy differ from Mainstream Economics and the individualistic market economy.

The Future of Economic Policy Making: A Functional and Social Exploratory Perspective

The main goal of this paper is to highlight the exploration of a corporate path for obtaining sustainable economic growth through the private – public partnership principle. The basic hypothesis offers the idea of an integrated proactive governance system created to succeed by combining in emergent countries the synergic relation between government action and corporate governance. The niche objective of this research is using a governance algorithm from a corporation scaled to the dimension of a nationwide economy to generate on the long term sustainable economic growth by creating, maintaining and developing intra-horizontal competitive advantage. The sustainable evolution of an emergent economy could be framed in a corporate model, highlighting one of the ideas Joseph Schumpeter rounded in his academic research, the idea that a corporate model can better protect a nation, region or state union by decreasing the need of an intervention through government action and only by maintaining a connection between market’ needs and the private sector, having as result a smoother demand cyclicity.

Schumpeter, Entrepreneurship, and Creative Destruction

Destruction of businesses, fortunes, products, and careers is the price of progress. This is what Joseph Schumpeter describes as “Creative Destruction.” His life spanned two World Wars, the Great Depression and the beginning of the Cold War. He saw rapid change and realized the importance of change. His vision was stark and he saw that change was essential for growth. He had witnessed so many clashes in life and yet he could see revival for those who adopted to changing environment. These environmental changes may have been the reason for his philosophy. It was in 1942 he first used this phrase ‘creative destruction’. He used this phrase to propound the concept of net economic growth. People tend to see results in a shorter perspective. He saw beyond the ordinary.

Corporate Governance on the National Olympic Committee of Thailand

The Olympic Games is by far the most admirable competitions among athletes and the most spectacle sports tournaments among sports fans. The Olympic Games is built on their very core values when the games bring together people around the world to witness one of the amazing sports events in the world. It is a congregation of the Olympic Games. Three core values, i.e., excellence, friendship and respect, are around the world. The immense role of the dissemination of Olympic values and promoting and overseeing the Olympic Games falls on the shoulder of the International Olympic Committee (IOC) which is a decision-making organization regarding the Olympic affairs. Though a huge responsibility lied upon the IOC, the IOC alone cannot operate and function at this successful level. The National Olympic Committees (NOCs) from various countries need to provide considerable support to the IOC, and the accomplishment of the IOC’s objectives can be achieved only if the NOCs work efficiently and effectively. The NOCs perform various functions and provide a significant contribution to promoting sports in a country. Thailand is one of the IOC members. The missions of the National Olympic Committee of Thailand (NOCT) under the Royal Patronage of H.M. the King include supporting and promoting amateur sports and physical education, sending delegated athletes and the international. Competitions, providing welfare and education for athletes and coaches, organizing a sports museum, and coordination with different management of the NOCT are highly essential. Effective management of the NOCT will lead not only to the increasing number of junior athletes and national athletes and the success of our national athletes in major international sports competitions, but also to gear Thailand to be a healthy society using sports as a means to this end. In business, it is often argued that effective management is caused by competition. The term “creative destruction” coined by Joseph Schumpeter has continuously been proven through time that the most effective and innovative firms will thrive. Without competition, there is no real incentive and need for firms to be effective and efficient. Firms can do whatever they want bearing few or no consequences. Many sports governing bodies, e.g. the IOC and the NOCs, however, have no competition and, thus, are a monopoly. Yet, thee organizations need to be most effective. In this paper, we will argue that corporate governance is the solution to make the NOCs and the IOC to be most effective by using an example of the NOCT. Corporate governance (CG) can be loosely defined as to how to institute integrity to organizations/industries. Similar to business, the IOC and the NOCs need to instill integrity to their members no matter who they are or what role they take. A cleverly tailored corporate governance process employing control from both top-down and bottom-up will provide a necessary means to make the NOCs or, in this paper, the NOCT becomes well managed.

War and Capitalism: Some Important Theories and a Number of Relevant Facts

The first thing worth noting about “war and capitalism” are the important intellectual traditions referring to the relations between these two terms, which operate in radically opposing ways. However, the main intellectual currents since the Enlightenment have posited an essential antipathy between these two concepts. Economic links were supposed to inhibit social conflicts and promote reciprocal dependencies, thus civilizing customs and promoting peace, both internally and among different sovereign entities. These ideas are coherent with world-visions with many ramifications, but often expressed under the form of an “ought-to-be”, not regarding real facts. An example is the work of Adam Smith, who argued that colonial trade was potentially a peaceful activity, good for all parties involved, whereas he simultaneously recognized that economic reality strayed considerably from such a rosy picture. The exact reasons for that remained somewhat vague, although Smith tended to blame monopolies and the mingling of trade with the exercise of sovereignty, as opposed to a peace-inducing model of open competition. This cluster of issues is treated here via the revision of the correspondent ideas by a number of important social theorists, including Adam Smith, Karl Marx, Max Weber, Werner Sombart, Thorstein Veblen, Joseph Schumpeter, Alexander Gerschenkron, Karl Polanyi, Fernand Braudel, Giovanni Arrighi and Michael Mann. The theories advanced by these authors are also contrasted with various important historical facts and trends, mentioned in the works of other relevant researchers, mostly historians, suggesting the convenience of keeping an open mind vis-a-vis the complexities, ambivalences and indeterminacies of social realities.

Schumpeter on democratic survival

Joseph Schumpeter’s Capitalism, Socialism and Democracy, first published in 1942, has been called “the most influential twentieth-century approach to the democratic management of power relations.” In that text, Schumpeter famously denies that democracy has any intrinsic value. There is no necessary association between democratic government and the values of equality and liberty. Democracy is merely one method of political organization among many. It means nothing more than that “the people have the opportunity? of accepting or refusing the men who are to rule them,” via “competitive elections” (CSD, 284-285).

IN THE EARLY JOSEPH ALOIS JULIUS SCHUMPETER'S FOOTSTEPS - MARRIAGE, TRAGEDY AND EMIGRATION

At the age of 42 Joseph Alois Schumpeter married the 20 years younger Anna (Annie) Josefina Reisinger. Joseph Schumpeter is looking forward to being a father, and the couple have a child, Joseph, but both Annie and the baby dies during confinement. The tragedy is a fact, and Schumpeter loses the joy of scientific creativity and concentration. His existence is concurrently burdened by private financial problems. He holds fast to his creative youth work, Theorie der wirtschaftlichen Entwicklung, which is a companion through life and the foundation stone of modern entrepreneurial research worldwide. The article analyzes the important events in Schumpeter's life and its importance to scientific development in economic theory. The article analyzes the important events in Schumpeter's life and its importance to scientific development in economic theory. Theorie der wirtshaftlichen Entwicklung (English title; The Theory of Economic Development) was first published in 1912. After emigration to Harvard in 1934, the third edition was translated into English and opened up for a broader readership worldwide. However, the seventh chapter was omitted from the second and third edition, which formed the basis for the translation into English. It is a fact that the English version of 1934 in turn has served as the basis for translation to many other languages. How well known and understood was actually Schumpeter's innovative and independent scientific contribution from his early days, and what are the consequences of the Lost Chapter in economic theory? The author of the article walks in the early Schumpeter's footsteps by visiting places where the famous economist used to live and work, and thereby making interviews with key persons on sites to analyze the background for the historical development in economic philosophy. The article concludes that personal freedom, especially in connection with wage labor and market profit are preconditions for scientific independent activity.

The best horse in the Viennese stables: Gottfried Haberler and Joseph Schumpeter

Haberler knew Schumpeter as a mentor, colleague and fatherly friend for almost 25 years. His well-known obituary of Schumpeter, besides offering an overview of Schumpeter’s work, brings to light a wealth of biographical information, invaluable spadework for future biographers. The obituary draws attention to various facets of Schumpeter’s multi-layered personality and notes the ironical tone in his writings. Schumpeter draws on irony as a rhetorical strategy when he considers the prospects for capitalism in Capitalism, Socialism and Democracy. The ironical mode as a common ploy for dealing with disaster is ingrained in the Austrian culture of Schumpeter’s youth.

Schumpeter and Goodwin

This paper compares the essential theoretical works of Joseph Schumpeter and Richard Goodwin. Though it also describes some biographical details of their overlapping lifetimes, the main focus is on the relation between their theoretical contributions. It is concluded that their role as theoretical mavericks challenging mainstream economics mirrors the methodological approach of evolutionary economics: progress needs the singular and unconventional challenge of innovators. Their long-lasting influence still is exerted by the scholars they influenced during their last period of activity. As well as showing several similarities the paper also discusses the essential differences between Schumpeter’s and Goodwin’s theoretical positions – in particular with respect to the works of Marx and Keynes.

Econometric Society 1930: How it Got Founded

The Econometric Society was founded in December 1930. Invitations for a meeting to establish “an international society for the advancement of economic theory in its relation to statistics and mathematics” had been distributed by Irving Fisher, Ragnar Frisch and, Charles F. Roos together with a draft constitution. In June 1930 the same instigators had sent a form letter to a list of thirty-one scholars from ten different countries to solicit advice on establishing an international association “to help in gradually converting economics into a genuine and recognized science.” The hitherto unpublished responses of these scholars are set out in the paper. The impact of the solicited advice, not least from Francois Divisia and Joseph Schumpeter, on the formation of the Econometric Society is discussed in some detail.

The Elgar Companion to David Ricardo

To paraphrase Joseph Schumpeter, economists stay (and should stay) relevant only so long as their ideas remain so. From that perspective, and on three counts, David Ricardo is even more relevant today than at any point in the past.

Desenvolvimento tecnológico e a indução jurídica em face da Constituição do Brasil de 1988

The 1988 Constitution of Brazil extols in Art. 219 that the internal market integrates the national patrimony and will be encouraged to provide the technological autonomy of the country. According this constitutional provision and the competences for state intervention on economic domain (Art . 174 CF/88) stands out the inducement as the way to attract the private sectors of economic activity in this endeavor. The theme of innovation, including, the technological ones, requires attention and must be treated at the level of strategic sector for socioeconomic development as proposed by Joseph Schumpeter. In this sense governments have constitutional power under Art. 218 to intervene on behalf of public and private investments in the context of science, research and technological expertises. This duty is based on the achievement of the constitutional purpose of ensuring national development (Art. 3, II). It is the course that Norberto Bobbio denominates encouragement techniques which do not abandon the traditional image of law as protector-repressive system. But, praises the promotional function of the state in its legitimate socioeconomic developmental assignment, as John Maynard Keynes advocates.

Creating a Favourable environment For Managing Innovation In Organizat?on

The research on innovation had been a vast field that have drawn a lot of thinking and also creativity. The condition necessary for forming a favorable environment in the most of organisation is just a light reflecting to the proposed pathway a company can utilize so as to attaining success in innovation. Innovation according to Austrian Economist Joseph Schumpeter outlined in (The theory of economic development) where he proposed 5 types of innovation. Product, Process, Business, Source of supply, Mergers and divestment.There have been alot of works on innovation which lead to addition types of innovation. To understand the topic innovation, one must be able to also comprehend the some key components of innovation, the nature of innovation, the importance, the stages of Innovation, the categories innovation, the drivers of innovation. The strategies that we can use to motivate members is also neccessary.Further, an extensive research was conducted that lead to the proponent of six conditions that can favour the management of innovation in organisations as: The importance of teamwork and the involvement of every employee, the importance of management participation, the importance of effective communication and information flow, the importance of an innovative culture, the importance of the employees vocational training, the importace of employees role integration around specialties and process rather than department.