Schumpeterian growth theory: Entrepreneurship – a response to the economic downturn


  • Јово Атељевић Faculty of Economics, University of Banja Luka



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.


Baily, M.,Bartelsman, E., Haltiwanger, J. Downsizing and Productivity Growth: Myth or Reality? Small Business Economics. 8(4), pp. 259- 278, 1996.

Baumol, W. Entrepreneurship: productive, unproductive, and destructive. Journal of Political Economy. 98(5), pp. 893-921, 1990. Baumol, W. Entrepreneurship, management, and the structure of payoffs. Cambridge and London: MIT Press, 1993.

Castells, M. (1996) Te Rise of the Network Society. The Information Age: Economy, Society and Culture. Vol. I. Blackwell, Oxford, 1996.

Dasgupta, P., David, P. Towards a new economy of science, in Research Policy, No. 23. 1994; Burton-Jones, A . Knowledge Capitalism. Oxford: Oxford University Press, 1994.

European commission (2010), Communication from the commission, Europe 2020, a strategy for smart, sustainable and inclusive growth, Brussels

Georgescu-Roegen, N. Methods in Economic Science. Journal of Economic Issues. V. 13, N. 2 (June): 317-328, 1979.

Gillespie A., Richardson, R., Cornford, J. Regional Development and the New Economy. European Investment Bank Papers, Vol 6 n 1, 2001, p 109-131, 2001.

Grant, R. The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review 33 (Spring) pp. 114-135, 1991.

Hirschman, A. The Strategy of Economic Development. New Haven: Yale University Press, 1958.

Jensen, M. The Modern Industrial Revolution, Exit, and Failure of Internal Control Systems. Journal of Finance, 1992.

Krugman, P. The Role of Geography in Development International.

Krugman, P. What’s New About the New Economy Geography. Oxford Review of Economic Policy. Vol 14, No 2, pp. 7-17, 1998.

Lucas, R. On the Mechanics of Economic Development. Journal of Monetary Economics 22: pp. 3–42, 1988.

Moore’s original statement can be found in his publication „Cramming more components onto integrated circuits”, Electronic Magazine, 19.4.1965.

Myrdal, G. Economic Theory & Underdeveloped Regions. London: Duckworth, 1957.

Ohmae, К. The End of Nation State. Cambridge: A Harvard Business Review Book, 1995.

Ozawa, T. Japan in a new phase of multinationalism and industrial upgrading: functional integration of trade, growth and FDI. Journal of World Trade. 25 (February), pp. 43-60, 1991.

Peters, T. Triving on Chaos. New York: Harper & Row,1990.

Porter M. E. The Competitive Advantage of Nations. London: Macmillan, pp. 545-565, 1990.

Porter, M. Competitive Advantages of Nations. New York: Macmillan, Free Press, 1990.

Pounder, R.St., John, C. Hot Spots and Blind Spots: Geographical clusters of the firms and innovation. Academy of Management Review. Vol. 121 No.4, 1192-1225, 1996.

Regional clusters in Europe, Observatory of European SMEs 2002/ No. 3, European Commission.23. Regional Science Review, Vol. 22, No. 2, pp.142-161, 1999.

Romer, P. Increasing Returns and New Developments in the Theory of Growth. Chicago: University of Chicago, 1989.

Romer, P. Endogenous Technical Change. Journal of Political Economy. 98, pp. 338-354, 1990.

Rugman, A. Diamond in the Rough, Business Quarterly, Vol. 55, 1991, pp.61-64, 1991.

S Saxenian, A. Culture and Competition in Silicon Valley and Route 128. Cambrigde: Harvard University Press, 1994.

Sassen, S.Global Cities: New York, London, Tokyo. Princeton: Princeton University Press, 1991.

Saxenian, A. Culture and Competition in Silicon Valley and Route 128. Cambrigde: Harvard University Press, 1994.

Schumpeter, J. Capitalism, Socialism and Democracy. New York: Routledge, 1942.

Solow, R. M. Lecture to the memory of Alfred Nobel. December 8, 1987: Growth Theory and After, 1987.

Solow, R. M. Growth Theory, An Exposition. Oxford University Press, 2000.

Tofer, A. Future Chock. London: Bodley Head,1970. Tofer, A. Tird Wave. New York: Bantam, 1980.

Tuomi, Ilkka „Te Lives and Death of Moore’s Law”.




How to Cite

Атељевић, Ј. (2013). Schumpeterian growth theory: Entrepreneurship – a response to the economic downturn. Acta Economica, 11(18), 219–238.



Review article