The Integration of Theory and History

Methodology and Ideology in Schumpeter’s Economics
  • William Lazonick
Part of the Recent Economic Thought book series (RETH, volume 36)


If one accepts Joseph A. Schumpeter’s argument that innovation is the “fundamental phenomenon of economic development,” then to under-stand the process of economic development requires that we study how and under what conditions innovation occurs. If one also accepts that an understanding of the process of economic development is of central concern to economics as a social science, then economists should possess the capability to study innovation (for an extended argument on which this essay draws, see Lazonick, 1991a).


Economic Development Business Cycle Innovation Process Evolutionary Approach Economic History 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Aitken, H.G.J. (ed.). 1965. Explorations in Enterprise. Cambridge: Harvard University Press.Google Scholar
  2. Berle, A., and Means, G.C. 1968. The Modern Corporation and Private Property, revised edition. New York: Harcourt, Brace & World.Google Scholar
  3. Best, M. 1990. The New Competition: Institutions of Industrial Restructuring. Cambridge: Harvard University Press.Google Scholar
  4. Chandler, Jr., A.D. 1962. Strategy and Structure: Chapters in the History of the American Industrial Enterprise. Cambridge: MIT Press.Google Scholar
  5. Chandler, Jr., A.D. 1977. The Visible Hand: The Managerial Revolution in American Business. Cambridge: Harvard University Press.Google Scholar
  6. Chandler, Jr., A.D. 1990. Scale and Scope: The Dynamics of Industrial Capitalism. Cambridge: Harvard University Press.Google Scholar
  7. Chandler, Jr., A.D. 1992. Organizational Capabilities and the Theory of the Firm’. Journal of Economic Perspectives, 6, 79–100.Google Scholar
  8. Dosi, G., C. Freeman, R. Nelson, and Soete, L. (eds.). 1988. Technical Change and Economic Theory, Pinter.Google Scholar
  9. Elbaum, B., and Lazonick, W. (eds.). 1986. The Decline of the British Economy. Oxford, Oxford University Press.Google Scholar
  10. Ferleger, Louis, and Lazonick, W. 1993. “The Managerial Revolution and the Developmental State: The Case of U.S. Agriculture.” Business and Economic History, 22 (forthcoming).Google Scholar
  11. Hannah, L. 1983. The Rise of the Corporate Economy: The British Experience, 2nd ed. Baltimore, MD: Johns Hopkins University Press.Google Scholar
  12. Hanusch, Horst (ed.). 1988. Evolutionary Economics: Applications of Schumpeter’s Ideas. Cambridge, UK: Cambridge University Press.Google Scholar
  13. Heertje, A., and Perlman, M. (ed.). 1990. Evolving Technology and Market Structure: Studies in Schumpeterian Economics. Ann Arbor, MI: University of Michigan Press.Google Scholar
  14. Landes, D.S. 1969. The Unbound Prometheus: Technological Change and Indus-trial Development in Western Europe from 1750 to the Present. Cambridge, UK: Cambridge University Press.Google Scholar
  15. Landes, D.S. 1991. “Introduction: On Technology and Growth.” In Favorites of Fortune: Technology, Growth and Economic Development since the IndustrialRevolution. P. Higonnet, D.S. Landes, and H. Rosovsky, eds. Cambridge: Harvard University Press.Google Scholar
  16. Lazonick, W. 1986. “Strategy, Structure, and Management Development in the United States and Britain.” In Development of Managerial Enterprise. K. Kobayashi and H. Morikawa, eds. Tokyo: University of Tokyo Press, pp.101–146.Google Scholar
  17. Lazonick, W. 1991a. Business Organization and the Myth of the Market Economy. Cambridge, UK: Cambridge University Press.Google Scholar
  18. Lazonick, W. 1991b. “What Happened to the Theory of Economic Development?” In Favorites of Fortune: Technology, Growth and Economic Development since the Industrial Revolution. P. Higonnet, D.S. Landes, and H. Rosovsky, eds. Cambridge: Harvard University Press.Google Scholar
  19. Lazonick, W. 1992. “Controlling the Market for Corporate Control: The Historical Significance of Managerial Capitalism.” Industrial and Corporate Change 1:445–448.CrossRefGoogle Scholar
  20. Lazonick, W. 1993a. “Learning and the Dynamics of International Competitive Advantage.” In Learning and Technical Change. R. Thomson, ed. New York St. Martin’s Press.Google Scholar
  21. Lazonick, W. 1993b. “Social Organization and Technological Leadership.” In Convergence of Productivity: Cross-National Studies and Historical Evidence, W. Baumol, R. Nelson, and E. Wolff, eds. New York: Oxford University Press.Google Scholar
  22. McCraw, T.K. 1990. “Berle and Means.” Reviews in American History 18:578–596.CrossRefGoogle Scholar
  23. McCraw, T.K., and Reinhardt, F. 1989. “Losing to Win: U.S. Steel’s Pricing, Investment Decisions, and Market Share, 1901–1938.” Journal of Economic History 49:593–619.CrossRefGoogle Scholar
  24. Marshall, A. 1961. Principles of Economics, Vol. 1. 9th (variorum) ed. New York: Macmillan.Google Scholar
  25. Morikawa, H. 1989. “The Increasing Power of Salaried Managers in Japan’s LargeCorporations.” In Managing Industrial Enterprise: Cases from Japan’s Prewar Experience. W.D. Wray, ed. Cambridge, MA: Council on East Asian Studies, pp. 27–51Google Scholar
  26. Morikawa, H. 1992. Zaibatsu: The Rise and Fall of Family Enterprise Groups in Japan. Tokyo: University of Tokyo Press.Google Scholar
  27. Nelson, R.R., and Winter, S.G. 1982. An Evolutionary Theory of Economic Change. Cambridge: Harvard University Press.Google Scholar
  28. Scherer, F.M. 1984. Innovation and Growth: Schumpeterian Perspectives. Cam-bridge: MIT Press.Google Scholar
  29. Scherer, F.M., and Perlman, M. (eds.). 1992. Entrepreneur ship, Technological Innovation, and Economic Growth: Studies in the Schumpeterian Tradition. Ann Arbor, MI. University of Michigan Press.Google Scholar
  30. Schumpeter, J.A. 1928. “The Instability of Capitalism.” Economic Journal 48:361–386.CrossRefGoogle Scholar
  31. Schumpeter, J.A. 1939. Business Cycles. New York: McGraw-Hill.Google Scholar
  32. Schumpeter, J.A. 1946. “Capitalism.” Encyclopedia Britannica 4:801–807.Google Scholar
  33. Schumpeter, J.A. 1947a. “Theoretical Problems of Economic Growth.” Journal of Economic History 7 (Suppl.) 1–9.Google Scholar
  34. Schumpeter, J.A. 1947b. “The Creative Response in Economic History.” Journal of Economic History 7:149–159.Google Scholar
  35. Schumpeter, J.A. 1949a. “Economic Theory and Entrepreneurial History.” In Change and the Entrepreneur. Research Center in Entrepreneurial History. Cambridge: Harvard University Press, pp. 6384.Google Scholar
  36. Schumpeter, J.A. 1949b. “Science and Ideology.” American Economic Review 39:345–359.Google Scholar
  37. Schumpeter, J.A. 1950a. Capitalism, Socialism and Democracy, New York: Harper.Google Scholar
  38. Schumpeter, J.A. 1950b. “The March in Socialism.” American Economic Review 40:446–456.Google Scholar
  39. Schumpeter, J.A. 1951. Ten Great Economists: From Marx to Keynes, Oxford University Press.Google Scholar
  40. Schumpeter, J.A. 1954. History of Economic Analysis, Oxford University Press.Google Scholar
  41. Schumpeter, J.A. 1961. The Theory of Economic Development. New York: Oxford University Press.Google Scholar
  42. Sass, S.A. 1986. Entrepreneurial Historians and History: Leadership and Rationality in American Economic Historiography, 1940–1960. New York: Garland.Google Scholar
  43. Solo, C.S. 1951. “Innovation in the Capitalist Process: A Critique of the Schumpeterian Theory.” Quarterly Journal of Economics 65:417–428.CrossRefGoogle Scholar
  44. Stiglitz, J.E. 1985. “Credit Markets and the Control of Capital.” Journal of Money, Credit, and Banking 17:133–152.CrossRefGoogle Scholar
  45. Stiglitz, J.E. 1986. “Theory of Competition, Incentives, and Risk.” In New Developments in the Analysis of Market Structure. J.E. Stiglitz and F. Mathewson, eds. Cambridge: MIT Press, pp. 399–446.Google Scholar

Copyright information

© Kluwer Academic Publishers 1994

Authors and Affiliations

  • William Lazonick
    • 1
  1. 1.CambridgeUSA

Personalised recommendations