Abstract
Innovation is a broader concept than technology. It includes both technology and knowledge capital. Technology is based mainly on the accumulation of physical capital. Knowledge capital and know-how are based on the accumulation of human capital. Human capital may take several forms, e.g., R&D investment, learning by doing, organizational learning, and creative forms of research applications. Schumpeter’s concept of innovation is very broad: it plays a central role in speeding up capitalist development. It fundamentally alters the paradigm of Walrasian competitive equilibrium: it shifts the production frontier, develops new products and processes, and changes the market structure.
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Sengupta, J. (2011). Innovation. In: Understanding Economic Growth. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-8026-7_4
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DOI: https://doi.org/10.1007/978-1-4419-8026-7_4
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