Schumpeterian growth theory: Difference between revisions
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Revision as of 19:48, 7 May 2018
The Schumpeterian growth theory (or Schumpeterian growth paradigm) 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 SGT 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]
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See also
References
- ↑ Template:Cite book
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