INNOVATION SYSTEMS IN THE TERMS OF SCHUMPETERIAN CREA-TIVE DESTRUCTION

Robert Ciborowski

Abstract


‘Creative destruction’ is one of the most important analytical tools, taking into consideration both the economic and sociological characteristics of capitalist society. According to Schumpeter, in the long term, evolution gives rise to economic develo-pment resulting from batches of innovative solutions, leading to improvements in the standard of living.
The innovation activity of firms is based on supply-side factors, hence it is large en-terprises that excel in innovation since they strive to achieve a monopoly market posi-tion and above-average profits.
Schumpeter attempts to combine two elements: the spread of monopolies and the con-tinuation of economic development, both occurring through innovation, which is far more important than price competition. The Schumpeterian ‘creative destruction’ permeates the main aspects of macroeconomic activity, not only in the long term, but also in the area of economic fluctuations, structural changes, or the functioning of markets. As a result, it becomes a factor determining changes in the economic order.

Keywords


innovation; creative destruction; Schumpeter

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DOI: http://dx.doi.org/10.21303/2504-5571.2016.00114

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