Schumpeterian growth theory: Entrepreneurship – a response to the economic downturn
Keywords:New growth theory, Schumpeter’s creative destruction, entrepreneurship, knowledge economy
Ignorance and misunderstanding of Schumpeter’s writing are the main reasons why the Anglo-American School, as dominant in the context of neoclassical economics, was and still is separate from the German Historical School. However, Schumpeter’s arguments are relevant today because the system of general economic equilibrium has no adequate theory able to explain neither endogenous nor structural development proposed by Schumpeter. His theory of economic development can serve as a coherent response to Marxist theory. For Schumpeter, the intra-capitalist competition fully explains the structural changes in the economy. He argues that competition is a dynamic process of di?erences and struggles between companies, and not static competition as proposed by the Walrasian mathematical perfect model. Schumpeter argues that the theory of economic cycles and the growth theory are inseparable. The overarching aim of this paper is to through synthesize of theoretical analysis confirms the relevance of Schumpeter’s theory in the context of the digital economy.
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