Give the point of view of Joseph Schumpeter on economic development. Explain the pros and cons. Joseph A. Schumpeter (1939, 1942, 1991) argued that growth was supply driven by the factors ofproduction, with entrepreneurial innovation the most important of these. He believed in a "rawinstinct" that drove entrepreneurs. He saw development as being driven by discontinuous changes inthe economic environment fuelled by cycles of innovation. Schumpeter did not believe in diminishingreturns to innovation. The only reason profits declined was competition.

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Give the point of view of Joseph Schumpeter on economic development. Explain the pros and cons.

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Give the point of view of Joseph Schumpeter on economic development. Explain the pros and cons.

Joseph A. Schumpeter (1939, 1942, 1991) argued that growth was supply driven by the factors of
production, with entrepreneurial innovation the most important of these. He believed in a "raw
instinct" that drove entrepreneurs. He saw development as being driven by discontinuous changes in
the economic environment fuelled by cycles of innovation. Schumpeter did not believe in diminishing
returns to innovation. The only reason profits declined was competition.

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