Branching Economic Evolution and Creative Destruction
Publikation: Forskning - peer review › Tidsskriftartikel
Schumpeter designed his theory of creative destruction as an alternative to the Smith-Mill-Marshall theory of growth through branching economic evolution. But the two theories are actually complementary. While the theory of the branching of intrafirm and interfirm activities focuses on the gradual evolution of an increasing diversity in economic system, the theory of creative destruction focuses on the dramatic change of any given economic structure. The synthesis of the two theories helps us to understand the possibilities and limits to the gradualism and automatism of evolutionary processes. This paper suggests a synthesis that is based on the idea that the many activities within firms and households are the replicators of economic evolution. Thereby it develops the concepts of creative destruction at three levels: micro, meso and macro.
|Tidsskrift||Economics of Innovation and New Technology|