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.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 11P

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