Innovations and Profits Schumpeter and the Classical Heritage

Journal article | Zeitschriftenartikel

The paper discusses the problem of innovations and profits from a Schumpeterian perspective using the analytical tools of modern classical economics. The concept of “circular flow” is formalised and Schumpeter's zero-profits assumption investigated. Next a typology of process innovations is discussed using a simple two-sector framework. In Schumpeter profits are transitional phenomena. In the conditions contemplated, increases in labor productivity will lead to rising real wages. The argument is generalized to product-cum-process innovations in systems with joint production where a bad that is costly to dispose of is transformed into a good that can be marketed profitably.

Object Details

• Extent: Seite(n): 263-278
• Language: Englisch
• Notes: Status: Postprint; begutachtet (peer reviewed)

References and Relationships

• Bibliographic citation: Journal of Economic Behavior & Organization, 67(1)

Classification and Topics

• Subject: Wirtschaft ; Soziologie, Anthropologie ; Wirtschaftssoziologie ; Allgemeines, spezielle Theorien und Schulen, Methoden, Entwicklung und Geschichte der Wirtschaftswissenschaften

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kurz, Heinz D.
• Event: Veröffentlichung
• (where): Vereinigtes Königreich
• (when): 2008

Further information

• DOI: https://doi.org/10.1016/j.jebo.2007.08.003
• URN: urn:nbn:de:0168-ssoar-253833
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST