Schumpeterian model: Difference between revisions
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* Innovations are produced by entrepreneurs who seek monopoly rents from them. | * Innovations are produced by entrepreneurs who seek monopoly rents from them. | ||
* New technologies drive out old technologies.<ref>{{cite web|title=The Schumpeterian Framework|url=http://faculty.cas.usf.edu/jkwilde/macro208/ah2-schumpeterian.pdf|website=faculty.cas.usf.edu|accessdate=7 May 2018}}</ref> | * New technologies drive out old technologies.<ref>{{cite web|title=The Schumpeterian Framework|url=http://faculty.cas.usf.edu/jkwilde/macro208/ah2-schumpeterian.pdf|website=faculty.cas.usf.edu|accessdate=7 May 2018}}</ref> | ||
Latest revision as of 19:40, 13 May 2018
The Schumpeterian model is a model of long-run economic growth model.
Called Schumpeterian growth theory or Schumpeterian growth paradigm, it is one of the two branches of innovation-based theory (the other being product-variety model). The Schumpeterian growth theory was developed by French economist Philippe Aghion and Peter Howitt (1992). it grew out of modern industrial organization theory. It focuses on quality-improving innovations that render old products obsolete and hence involves the force that Austrian-American economist Joseph Schumpeter called creative destruction.[1] The SM models growth as resulting from innovations involving creative destruction.[2]
Structure
The Schumpeterian growth theory is underlined by three main assumptions:
- Growth is primarily driven by technological innovations.
- Innovations are produced by entrepreneurs who seek monopoly rents from them.
- New technologies drive out old technologies.[3]
See also
External links
References
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