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The Review of Austrian Economics

, Volume 32, Issue 4, pp 321–330 | Cite as

The entrepreneurship scholar plays with blocs: Collaborative innovation or collaborative judgment?

  • Nicolai J. FossEmail author
  • Peter G. Klein
  • Matthew McCaffrey
Article

Abstract

Elert and Henrekson (2019) draw important connections between Austrian economics and the Schumpeterian literatures on “development blocs” and “the experimentally organized economy.” We appreciate their emphasis on experimentation and think that Austrian ideas on the time structure of production and the multiple specificities of capital offer complementary insights into why production is likely to be clustered, localized, and path-dependent. While we agree that Austrian economics can benefit from a “meso” level of analysis between individuals and market outcomes, we do not think their proposed Experimentally Organized Economy framework adds much to existing Austrian theory and policy analysis. We also suggest that, by focusing on Kirzner’s entrepreneurial discovery approach, Elert and Henrekson miss other Austrian approaches to entrepreneurship that can better inform their analysis.

Keywords

Austrian economics Experimentation Economic development Entrepreneurship 

JEL codes

B53 B15 L26 O43 

Notes

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.iCRIOS-Department of Management and TechnologyBocconi UniversityMilanItaly
  2. 2.Hankamer School of BusinessBaylor UniversityWacoUSA
  3. 3.Masood Enterprise Centre, Alliance Manchester Business SchoolUniversity of ManchesterManchesterUK

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