Rethinking the Market Economy New challenges, new ideas, new opportu
This book explores the changing socio-economic and technological landscape of the 21 century and what it means. It adopts an industrial economic approach, whilst proposing a road map leading to the adoption of a 'societal market economy' model as an appea
- PDF / 105,631 Bytes
- 25 Pages / 595 x 842 pts (A4) Page_size
- 95 Downloads / 226 Views
Please respect intellectual property rights This material is copyright and its use is restricted by our standard site license terms and conditions (see palgraveconnect.com/pc/connect/info/terms_conditions.html). If you plan to copy, distribute or share in any format, including, for the avoidance of doubt, posting on websites, you need the express prior permission of Palgrave Macmillan. To request permission please contact [email protected].
5
Traditional economics viewed economic growth in terms of investment levels and relationships among the three factors of production – land, capital and labour – and considered that competition between organizations is based on prices. Innovation economists argue that, in a market economy, innovation rather than price is the primary competitive dimension. Since the late 1980s, the economic literature1 suggests that R&D, innovation and spillovers are actually key factors driving self-sustained economic growth and that these factors are generated from within the capitalist system by responding to economic incentives. The turn of the century saw not only developed economies, but also most of the emerging economies, including China, India, Russia and Brazil, accepting the idea that innovation will drive further progress in economic growth and is essential to the survival of firms. This change in thinking forms much of the basis for justifying public support of R&D spending and established policies to promote innovation. One of the key objectives of the EU during the last decade has been to encourage increasing levels of R&D investment, in order to provide a stimulus to the EU’s competitiveness.
Today’s entrepreneurial capitalism Entrepreneurial capitalism is associated today with the emergence of new technology sectors and new forms of organization. The Austrian economist J. Schumpeter has recognized the central role of entrepreneurs in a market economy, referring to innovations as “creative destruction”.2 The entrepreneur organizes the marriage of new knowledge embodied in an invention 1
See, in particular, Atkinson, R.D. and Ezell, S.J. (2012) Innovation Economics: The Race for Global Advantage, New Haven, Yale University Press; Baumol, W.J. (2002) The FreeMarket Innovation Machine: Analyzing the Growth Miracle of Capitalism, Princeton, NJ, Princeton University Press. 2 Schumpeter, J. (1942–94) Capitalism, Socialism and Democracy, London, Routledge. 87
10.1057/9781137392916.0009 - An Innovative Economy, Jean-Jacques Lambin
Copyright material from www.palgraveconnect.com - licensed to Bibliotheque de l'Universite Laval - PalgraveConnect - 2014-05-25
An Innovative Economy
with the successful introduction of that invention into the market. The development of new technologies, confronted with the emergence of new needs and new challenges, constitutes great opportunities for entrepreneurship.3 In Schumpeter’s vision of capitalism, innovative entry by entrepreneurs is the disruptive force that sustained economic growth, even as it destroyed the value of established companies
Data Loading...
