Schumpeter's innovations as the main factor of economic development: [preprint]

Thumbnail Image
Bazhal, Iurii
Journal Title
Journal ISSN
Volume Title
This paper gives arguments the powerful innovation activities ensure a rapid economic development of the countries. It is shown the recent facts confirm the Schumpeter's theory of economic development and it means that only innovation activities can provide the real economic development. Author concentrates attention on the conceptual meaning of Schumpeter's innovations as an isolated factor of economic development which creates a new added value and which may become a kind of 'a stem cell' of the new mainstream of economic theory as it was put forward by Schumpeter. The paper considers hypothesis that disregard of phenomenon of "innovation" as exogenous isolated factor of economic development led to the arising gap between the fundamental economic theory (mainstream) and the real innovation processes of modern economic life. The distinction of Schumpeter’s theoretical approach from Neoclassical logic lies in its recognition of the inner forces of the market system which condition the economic crises of capitalism, and that technological innovations ensure the overcoming the crisis state as well as they have been crucial for recovery and economic growth. However this factor always has been remaining in the shadows when the core methodological construct of mainstream theories had been forming.
Schumpeter’s theory of economic development, innovations, Economic development, Factors of economic growth, Basic textbooks in Economics, Transitive economy, conference materials, preprint
Bazhal, Iurii, Schumpeter's innovations as the main factor of economic development / Iurii Bazhal // The role of the State in Economic Development. State Capacity, State Autonomy and Economic Development : proceedings to the 29th EAEPE Annual Conference, Budapest, Hungary, 19-21 October 2017. - Budapest, 2017. - 16 p.