Schumpeter

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Schumpeter: Taking the long view | The Economist

24/08/13 12:14 AM

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Schumpeter

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Taking the long view
The pursuit of shareholder value is attracting criticism—not all of it foolish
Nov 24th 2012 | From the print edition
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HE IS the chief executive of a multinational corporation, but Paul Polman sometimes sounds more like a spokesman for Occupy Wall Street. The boss of Unilever (an AngloDutch consumer-goods firm with brands ranging from Timotei shampoo to Ben & Jerry’s ice cream) agonises about unemployment, global warming and baby-boomer greed. He puts some of the blame for these ills on the most influential management theory of the past three decades: the idea that companies should aim above all else to maximise returns to shareholders. He appears to mean it. Since taking charge in 2009, Mr Polman has stopped Unilever from publishing full financial results every quarter. He refuses to offer earnings guidance to equity analysts. He has introduced a lengthy “sustainable living plan” and attracted a new cadre of long-term investors, particularly in emerging markets. He even told an audience in Davos that hedge-fund managers would sell their own grandmothers to make a profit. Mr Polman was one of several titans to decry the cult of shareholder value at the Peter Drucker Forum (an annual gathering of admirers of the late Austrian-born management guru) in Vienna on November 15th and 16th. Roger Martin, the dean of the Rotman School of…...

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...Economia dell’innovazione Capitolo I Il pensiero economico prima di Schumpeter Smith, Ricardo e Marx. Smith si concentra sulla relazione tra cambiamento tecnologico, divisione del lavoro e cambiamento strutturale dell’economia. Non si concentra sul processo di generazione di innovazioni ma sulla incorporazione del progresso tecnologico nei beni capitali che porterebbe ad una specializzazione del lavoro e quindi ad un aumento della produttività. Ricardo studia il progresso tecnologico dal punto di vista endogeno, tracciando la relazione innovazione-riduzione dei prezzi-aumento della domanda, che dal punto di vista esogeno secondo il quale l’innovazione avrebbe influenze sul livello di occupazione. Marx sostiene che l’innovazione è incorporata nelle macchine e che un nuovo settore, quello dei produttori di macchine, le sta portando da inefficienti a standardizzate. Enfatizza la natura sociale dell’innovazione che non nasce da inventori ma da un processo sociale fatto di scontri tra interesi contrapposti. Schumpeter Secondo Schumpeter l’innovazione è determinante per il mutamento industriale. Invenzione, secondo Schumpeter è qualcosa di puramente scientifico mentre innovazione è fare “qualcosa di nuovo” nel sistema economico, un nuovo prodotto, mercato o processo di produzione. Schumpeter considera il progresso scientifico come esogeno al sistema economico e non analizza gli effetti di fattori economici e sociali sullo sviluppo scientifico ne le relazioni......

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...2008). Different authors defines innovation differently and classifies innovation in various types. The Austrian economist Joseph Schumpeter (1934), a pioneer of innovation management, described innovation as “creative destruction”- a new association of production factors and production conditions. Schumpeter defined innovation from five aspects: The introduction of a new goods – which customers are not familiar yet, or a new quality of a goods. The introduction of a new method of production, which not only means new technology, but also means a new way of handling a commodity commercially. The opening of a new market. New market does not just mean the markets which never existed before, it also means the markets which already exists but enterprises have not entered previously. Finding a new source of supply of raw materials or half-manufactured goods. Like new market, new source means both the source which has first to be created and the source which has existed but has not been used before. The carrying out of the new organization of any industry, like create a monopoly position or break up a monopoly position. Although more than 70 years has past after Schumpeter presented his innovation theory, it can be seen as a basic theory of innovation and has its own rationality to be widely known. Later, people summarized Schumpeter‟s innovation definition into five types: product innovation, process innovation, marketing innovation, resource allocation......

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...Prophet of Innovation: Joseph Schumpeter and Creative Destruction, by Thomas K. McCraw, Cambridge: Harvard University Press, 719 pages, $35. In Joseph A. Schumpeter’s (1883-1950) encyclopedic History of Economic Analysis, Schumpeter began by proclaiming that histories of economics should confine themselves to economic analysis, which he defined as “the analytic or scientific aspects of economic thought" (1954: 1). Schumpeter then proceeded to ignore his own edict, for over 1000 small-print pages. Having preached analysis-only Schumpeter practiced more ecumenically, weaving together intellectual history, biography, and economic sociology. Indeed, Schumpeter spent most of his last decade writing the 800,000 words of the ferociously erudite History, and thereby failing to complete a long-planned work of economic analysis. Thomas McCraw’s splendid new book brilliantly illuminates this Schumpeterian paradox, and the many others that made Schumpeter, as Phillip Mirowski put it, “a living, breathing contradiction” (1994: 5). Prophet of Innovation is not just a beautifully drawn portrait of Schumpeter’s life and times, it is also a distinguished business historian’s meditation on the two opposed cultures of political economy post-1870: history and theory. The Prophet of Innovation, among its other accomplishments, tells the story of how a great and productive intellect wrestled with the two-cultures problem in political economy. In the work of Schumpeter, McCraw finds the very......

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...Joseph Alois Schumpeter (Triesch, Moravia, February 8, 1883 - Salisbury, Connecticut, January 8, 1950 (age 66)) is an Austrian economist mid twentieth century, known for his theories of economic fluctuations, creative destruction and innovation . He is the author of a History of Economic Analysis, published in 1954 and still refers. Neither Keynesian nor neoclassical, is often close to the Austrian School of Economics. It is considered economist excitement and it is called heterodox economist for his theories on the evolution of capitalism in democracy, he believes doomed to disappear for social and political reasons. Schumpeter leaves hardly classify an economic school. Whether it was Austrian , he has never been part of the Austrian School with which he was familiar with the teachings of Eugen von Böhm- Bawerk at the University of Vienna. The economist he admired most was undoubtedly Leon Walras , but his analysis goes beyond the neoclassical framework . He was also heavily influenced by the writings of the German sociologist Max Weber. And if he shared some conclusions with Karl Marx, his analysis was very far from Marxist economic designs. Is actually the founder of general economic evolutionism . It is therefore listed in the circle called "heterodox" economists. He believes that the foundation and spring dynamics of the economy are innovation and technical progress. The history of capitalism is a permanent moult. Technology evolves, turns pushing swathes of...

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...must also be. Entrepreneurship is defined as one who introduces “the carrying out of new combinations,” (Schumpeter, 1934, p.74) whereas, innovation is the introduction of a new good or service into the market and can be split into two types: “the first refers to a gradualistic movement as tastes and populations change and refinements in business are developed. The second refers to spontaneous, discrete or discontinuous, internally generated changes which cannot be progressively associated with other causes,” (Binks & Vale, 1990, p.23) therefore, the first is gradual and is described as incremental innovation and the second is spontaneous which would be regarded as radical innovation. Radical innovation is classed as more significant for economic development. It is the idea of a discrete product that changes living standards more so. For example, for the camera industry in 2004: “Kodak and Fuji were among the first to embrace digital imaging technology and currently dominate the digital camera industry. Polaroid, on the other hand, faltered in the introduction of a digital camera.” (Danneels, 2004, p.252) So, this links how entrepreneurship from radical thinking is able to discretely produce economic development, and is also a good example of the gale of creative destruction by Schumpeter, which I will address in more detail later on. However, “according to Schumpeter, i.e. the potential instigator of the economic activity may be reluctant to pursue the event for the......

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...Demokratiidealer Joseph Schumpeter og elitedemokratiet I denne aflevering vil jeg redegøre for hvad? Det hedder med udgangspunkt i artiklen ”Joseph Schumpeter og elitedemokratiet” for konkurrence/elitedemokrati, derefter vil jeg lave en faglig diskussion af, om konkurrencedemokratiet eller deltagelsesdemokratiet er den bedste egnede styreform i dagens Danmark. Jeg vil benytte mig af begreber fra vores demokrati forløb. Demokrati Demokrati er et gammelt græsk ord som betyder folkestyre. Der er to former for demokrati i verden, den ene er direkte demokrati og den anden er indirekte demokrati. I det antikke Grækenland benyttede de sig af det direkte demokrati, hvor de frie, mandlige borgere mødtes i Athen og diskuterede statens udformning. De græske mænd kunne således direkte være med til at få en afgørende stemme om hvordan samfundet skulle indrettes. I Athen levede der på den tid 20.000 mennesker, så forsamlingen var overskuelig. I dagens Danmark ville det ikke kunne lade sig gøre at have direkte demokrati, da vi lever 5.3 mio. mennesker på 48.000 km2, derfor benytter vi os af det indirekte demokrati. Borgerne giver politikerne magten til at tage beslutninger om hvorledes landet skal styres. Elitedemokrati/konkurrencedemokrati I dagens Danmark er der blevet indført det repræsentative demokrati, hvor man lader valgte repræsentanter varetager éns interesser. Der stilles ligeledes en række krav til dets afholdelse, såsom ytringsfrihed og pressefrihed, så politikerne kan......

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