Schumpeterian growth theory
E764574
Schumpeterian growth theory is an economic framework that explains long-run economic growth primarily through innovation, entrepreneurship, and creative destruction driven by firms’ incentives to invest in new technologies.
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
economic growth theory
ⓘ
endogenous growth theory ⓘ |
| appliedIn |
analysis of growth and development
ⓘ
analysis of productivity dispersion across firms ⓘ innovation policy evaluation ⓘ studies of firm dynamics ⓘ |
| basedOn | Joseph Schumpeter’s concept of creative destruction ⓘ |
| contrastsWith |
Solow growth model
NERFINISHED
ⓘ
neoclassical exogenous growth theory ⓘ |
| coreConcept |
R&D investment
ⓘ
creative destruction ⓘ entrepreneurship ⓘ innovation-driven growth ⓘ quality-improving innovations ⓘ step-by-step innovation ⓘ technological progress ⓘ vertical innovation ⓘ |
| developedBy |
Peter Howitt
NERFINISHED
ⓘ
Philippe Aghion NERFINISHED ⓘ |
| developedIn | 1990s ⓘ |
| emphasizes |
entry and exit of firms
ⓘ
firms’ incentives to innovate ⓘ market structure and competition ⓘ monopoly rents from innovation ⓘ patent protection ⓘ reallocation of resources across firms ⓘ |
| explains |
firm turnover
ⓘ
long-run economic growth ⓘ productivity growth ⓘ structural change ⓘ |
| formalizedIn | Aghion and Howitt 1992 model NERFINISHED ⓘ |
| modelFeature |
R&D sector producing innovations
ⓘ
creative destruction of incumbent technologies ⓘ endogenous innovation intensity ⓘ monopolistic competition in intermediate goods ⓘ quality ladder structure ⓘ |
| namedAfter | Joseph Schumpeter NERFINISHED ⓘ |
| policyImplication |
importance of competition policy
ⓘ
importance of intellectual property rights design ⓘ industrial policy targeting innovation ⓘ role of education and human capital for innovation ⓘ role of financial development for innovation ⓘ |
| predicts |
firm turnover associated with productivity gains
ⓘ
growth effects of competition depend on distance to technological frontier ⓘ positive link between innovation and growth ⓘ |
| relatedTo |
endogenous growth theory of Paul Romer
ⓘ
quality ladder models in growth theory ⓘ |
Referenced by (1)
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