April 17, 2009 at 14:10Theory of Innovation by J. Schumpeter and Subsequent Theories
Meanwhile, I continue to publicize my brief notes on the topic of innovative economies. This article provides an overview of theories of innovation. In the future, I plan to develop this topic in several more topics.
The first most complete description of innovations was introduced into economic science by the Austrian scientist J. A. Schumpeter in his work Theory of Economic Development. The classic theory of innovation begins with this study. According to J. Schumpeter, innovation is not just innovation, but a factor of production. The massive emergence of "new combinations", according to Schumpeter, indicates the beginning of a boom in the economy. Without using the term “innovation” during this period, Schumpeter replaces it with five “new combinations” of production factors:
Schumpeter defines innovation as an economic category: it is a production function that determines “quantitative changes in a product, taking into account changes in the totality of factors acting on it. If, instead of a combination of factors, we change the form of the function, then we will get innovation. ” He argues that innovation should be considered only under the conditions of cyclical and dynamic competition of old goods and technologies with new ones that come to replace them. That is, innovation is a new production function that replaces the old.
After J. Schumpeter, based on the research of G. Mensch, M. Kalecki, B. Twiss, and others, “neoclassical” theories of innovation arose. Well-known representatives of this area evaluate innovation as the “main impulse” of development coming from new consumer goods, new methods of production and transportation, new markets, new organizational forms in industry. ”Moreover, they take into account the cyclical development of the economy.
A great contribution to the theory of economic growth under the influence of scientific and technological innovations was made by M. Kalecki. In accordance with its concept, continuous economic growth can be ensured within the product cycle, but the impulses that cause changes in the system of conditions can “take” the economy out of cyclical development and make it “spasmodic” in the long run. These impulses include innovation. According to M. Kalecki, innovations stimulate economic development, provide long-term reduction in the duration of economic downturns and lengthen periods of recovery.
Social theory is associated with the priority of human relations in the management of innovation. The main place in it is occupied by problems of the role of the individual, level of education, analysis of socio-psychological and organizational factors. For this theory, the main thing is to highlight a certain group of people as special carriers of innovation.
In modern conditions of development of innovative entrepreneurship, the so-called "theory of acceleration" has arisen. Representatives of this theory, based on N. Kondratyev’s theory of long waves, consider separately the development of entrepreneurship “according to the Western model” (USA). Western business is developing at a faster pace, it is more innovative, bold, risky. In the USA, the process of replacing old sectors of the economy with new ones is proceeding extremely quickly. The highest rates of development are observed in the sectors of the "third wave": computer hardware and technology, software. Over the past five years, the production of computers and office equipment has increased by 26.1%, and computer software by 24.9%, which confirms the conclusions of the acceleration theory about the connection between innovation and entrepreneurship,
This work by Koroteev. M. is licensed under a Creative Commons Attribution-Share Alike 3.0 Unported License .
The first most complete description of innovations was introduced into economic science by the Austrian scientist J. A. Schumpeter in his work Theory of Economic Development. The classic theory of innovation begins with this study. According to J. Schumpeter, innovation is not just innovation, but a factor of production. The massive emergence of "new combinations", according to Schumpeter, indicates the beginning of a boom in the economy. Without using the term “innovation” during this period, Schumpeter replaces it with five “new combinations” of production factors:
- The use of new technology, new technological processes or new market support for production.
- Making a new product or a famous product with new qualities.
- The use of new types of raw materials or semi-finished products.
- Changes in the organization of production and its material and technical support.
- Penetration into a new market.
Schumpeter defines innovation as an economic category: it is a production function that determines “quantitative changes in a product, taking into account changes in the totality of factors acting on it. If, instead of a combination of factors, we change the form of the function, then we will get innovation. ” He argues that innovation should be considered only under the conditions of cyclical and dynamic competition of old goods and technologies with new ones that come to replace them. That is, innovation is a new production function that replaces the old.
After J. Schumpeter, based on the research of G. Mensch, M. Kalecki, B. Twiss, and others, “neoclassical” theories of innovation arose. Well-known representatives of this area evaluate innovation as the “main impulse” of development coming from new consumer goods, new methods of production and transportation, new markets, new organizational forms in industry. ”Moreover, they take into account the cyclical development of the economy.
A great contribution to the theory of economic growth under the influence of scientific and technological innovations was made by M. Kalecki. In accordance with its concept, continuous economic growth can be ensured within the product cycle, but the impulses that cause changes in the system of conditions can “take” the economy out of cyclical development and make it “spasmodic” in the long run. These impulses include innovation. According to M. Kalecki, innovations stimulate economic development, provide long-term reduction in the duration of economic downturns and lengthen periods of recovery.
Social theory is associated with the priority of human relations in the management of innovation. The main place in it is occupied by problems of the role of the individual, level of education, analysis of socio-psychological and organizational factors. For this theory, the main thing is to highlight a certain group of people as special carriers of innovation.
In modern conditions of development of innovative entrepreneurship, the so-called "theory of acceleration" has arisen. Representatives of this theory, based on N. Kondratyev’s theory of long waves, consider separately the development of entrepreneurship “according to the Western model” (USA). Western business is developing at a faster pace, it is more innovative, bold, risky. In the USA, the process of replacing old sectors of the economy with new ones is proceeding extremely quickly. The highest rates of development are observed in the sectors of the "third wave": computer hardware and technology, software. Over the past five years, the production of computers and office equipment has increased by 26.1%, and computer software by 24.9%, which confirms the conclusions of the acceleration theory about the connection between innovation and entrepreneurship,
This work by Koroteev. M. is licensed under a Creative Commons Attribution-Share Alike 3.0 Unported License .