Abstract:
Explores the category of Schumpeterian innovations
as an isolated factor of economic development,
which creates a new added value and may become
like a “stem cell” of new mainstream theory of economic
development, assessing the gap between neoclassical
theory and innovation activities. Discusses
innovations—a known unknown phenomenon of
economy; key features of Joseph Schumpeter’s theory
of economic development; the “vicious cycle” of
a political economy without innovations; innovation
development versus reindustrialization; evaluating
innovation’s impact on economy; and human capital
and innovation development. Bazhal is Head of the
Economics Department at the National University
of Kyiv–Mohyla Academy.
