Skip to main content
SpringerLink
Log in

Innovations: A known Unknown Phenomenon of Economy

  • Chapter
  • First Online:
The Political Economy of Innovation Development

  • 529 Accesses

Abstract

This chapter considers the existence of conceptual collision when the mainstream of economic theory takes no notice of Schumpeter’s theory of economic development as the systematic doctrine. This raises serious theoretical and practical problems because the innovation development has become a key priority of successful economic policy. This chapter reveals the conceptual nature phenomenon of innovations as central category of Schumpeter’s theory, which is positioned as independent factor creating new added value. Category of innovation may become like a stem cell of the new Political Economy of innovation development. It is shown that methodological underestimation of innovation as fundamental category of economic theory led to the inadmissible gap between the neoclassical mainstream theories and the real innovation processes of modern economic life.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 59.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 59.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Agenor, P-R., and P. J. Montiel. (2015). Development Macroeconomics. 4th Ed. Princeton, N.J.: Princeton University Press.

    Book  Google Scholar 

  • Aghion, P. (2010). Schumpeterian Growth and Growth Policy Design. Economic Growth. Ed. by S.N.Durlauf and L.E.Blume.The New Palgrave Economics Collection. Basingstoke [England]; New York: Palgrave Macmillan. 229–36.

    Google Scholar 

  • Aghion, P., and P. W. Howitt. (1992). A model of growth through creative destruction. Economentrica. 60. 323–51.

    Article  Google Scholar 

  • Aghion, P., and P. W. Howitt. (2009). The Economics of Growth. Cambridge, Massachusetts; London, England: The MIT Press.

    Google Scholar 

  • Aslund, A. (2012). How Capitalism Was Built: The Transformation of Central and Eastern Europe, Russia, the Caucasus, and Central Asia. 2nd Edition. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Barro, R.J. (1996). Determinants of economic growth: a cross-country empirical study. NBER Working Paper 5698.

    Google Scholar 

  • Barro, R.J., and X. Sala-i-Martin. (1992). Convergence. Journal of Political Economy100(2):223–51.

    Article  Google Scholar 

  • Barro, R.J., and X. Sala-i-Martin. (1995). Economic Growth. USA: McGraw-Hill, Inc.

    Google Scholar 

  • Batchelor, Ray. (1994). Henry Ford: Mass Production, Modernism and Design. Manchester, UK: Manchester Un. Press.

    Google Scholar 

  • Bazhal, I., and I. Pisotska. (2012). The necessity of studying J. Schumpeter’s theory of economic development in UkrainianUniversities. Scientific Notes of NaUKMA. Pedagogical, Psychological Science and Social Work, 136:14–18. in Ukrainian.

    Google Scholar 

  • Cornell University, INSEAD, and WIPO. (2015). The Global Innovation Index 2015: Effective Innovation Policies for Development. Fontainebleau, Ithaca, and Geneva. Geneva, Switzerland: The World Intellectual Property Organization.

    Google Scholar 

  • Dixit, A.K., and J.E. Stiglitz. (1977). Monopolistic Competition and Optimum Product Diversity. American Economic Review67:297–308.

    Google Scholar 

  • Drazen, A. (2000). Political Economy In Macroeconomics. Princeton, N.J.: Princeton University Press.

    Google Scholar 

  • Durlauf, S.N., and L.E Blume Eds. (2010). Economic Growth. The New Palgrave Economics Collection. Basingstoke [England]; New York: Palgrave Macmillan.

    Google Scholar 

  • Ethier, W.J. (1982). National and International Returns to Scale in the Modern Theory of International Trade. American Economic Review 72:389–405.

    Google Scholar 

  • European Commission. (2015). State of the Innovation Union 2015. Publications Office of the European Union, Luxembourg; European Commission. (2016). European Innovation Scoreboard 2016. European Union, printed in Belgium.

    Google Scholar 

  • Evans, P. (1996). Using cross-country variances to evaluate growth theories. Journal of Economic Dynamics and Control 20:1027–49.

    Article  Google Scholar 

  • Godin, B. (2015). Innovation Contested: The Idea of Innovation Over the Centuries (Routledge Studies in Social and Political Thought). New York and London: Routledge.

    Google Scholar 

  • Gregory, Mankiw, N. (1997). Macroeconomics. 3rd ed. New York: Worth Publishers.

    Google Scholar 

  • Gregory, Mankiw, N. (2013). Macroeconomics. 8th ed. New York: Worth Publishers.

    Google Scholar 

  • Griliches, Z. (1994). Productivity, R&D, and the data constraint. American Economic Review 84(1):1–23.

    Google Scholar 

  • Grossman, G.M., and E. Helpman. (1991). Innovation and Growth in the Global Economy. Cambridge, MA: MIT Press.

    Google Scholar 

  • Innobarometer. 2015 - The innovation trends at EU enterprises. (2015). Flash Eurobarometer 415 - TNS Political & Social, European Union.

    Google Scholar 

  • Jones, C.I. (1995). R&D-based models of economic growth. Journal of Political Economy103:759–84.

    Article  Google Scholar 

  • Keynes, J. M. (1964 [1936]). The General Theory of Employment, Interest and Money. New York, London: A Harvest Book. Harcourt Brace & Co. SanDiego.

    Google Scholar 

  • Kolodko, G. W. (2011). 20 Years of Transformation: Achievements, Problems and Perspectives. European Political Economic and Security Issues. New York: Nova Scienc.

    Google Scholar 

  • Liu, L-G., and R. Premus. (2000). Global Economic Growth: Theories, Research, Studies, and Annotated Bibliography, 1950–1997. Westport, Conn.: Greenwood Press.

    Google Scholar 

  • Mankiw, N.G., D. Romer, and D.N. Weil. (1992). A contribution to the empirics of economic growth. Quarterly Journal of Economics107:407–37. and Weil, 1992.

    Article  Google Scholar 

  • Marx, K. (1992 [1867]). Capital: Volume 1: A Critique of Political Economy. Reprint edition. England: Penguin Classics. Penguin Books, Clays Ltd, St Ives plc.

    Google Scholar 

  • National Science Board. (2016). Science and Engineering Indicators 2016. Arlington, VA: National Science Foundation (NSB-2016–1).

    Google Scholar 

  • OECD. (2015). OECD Science, Technology and Industry Scoreboard 2015: Innovation for Srowth and Society. Paris: OECD Publishing.

    Book  Google Scholar 

  • OECD and Eurostat. (2005). Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data. Paris: OECD.

    Book  Google Scholar 

  • Piketty, T. (2014). Capital In the Twenty-First Century. Cambridge, Mass: London: The Belknap Press of Harvard University Press.

    Book  Google Scholar 

  • Reinhart, C. M., and K. S. Rogoff. (2009). This Time Is Different: Eight Centuries of Financial Folly. Prinston and Oxford: Priceton University Press.

    Google Scholar 

  • Ricardo, D. (2004 [1821]). The Principles of Political Economy and Taxation. Dover Publications. US: Courier Corporation.

    Google Scholar 

  • Roland, G. (2000). Transition and Economics: Politics, Markets, and Firms. Cambridge, Mass. London: The MIT Press.

    Google Scholar 

  • Romer, D. (1996). Advanced Macroeconomics. USA: The McGraw-Hill Companies, Inc.

    Google Scholar 

  • Romer, D. (2012). Advanced Macroeconomics. 4th ed. New York: McGraw-Hill Companies.

    Google Scholar 

  • Romer, P.M. (1990). Endogenous technological change. Journal of Political Economy98:S71–S102.

    Article  Google Scholar 

  • Rosenberg, N. (1983). Exploring the Black Box. Technology, Economics & History. Cambridge, UK; USA: Cambridge University Press.

    Google Scholar 

  • Ryaboshlyk, V. (2014). Crisis And Embodied Innovations: Fluctuating Trend vs Fluctuations Around Trend. the Real vs the Financial, Variety vs Average. UK: Palgrave Macmillan.

    Book  Google Scholar 

  • Sachs, J. D., and A. M. Warner. (1996). Achieving Rapid Growth in the Transition Economies of Central Europe - CASE Network Studies and Analyses. Warsaw: CASE Research Foundation.

    Google Scholar 

  • Schumpeter, J. A. (2010 [1934]). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. New Bruswick (U.S.A.) and London (U.K.): Transaction Publishers.

    Google Scholar 

  • Schumpeter, J. A. (2014 [1942]). Capitalism, Socialism and Democracy. 2nd ed. Floyd, Virginia: Impact Books.

    Google Scholar 

  • Schwab, K. (2016). The Fourth Industrial Revolution. Geneva, Switzerland: World Economic Forum. Geneva, Switzerland.

    Google Scholar 

  • Segerstrom, P.S., T.S.A. Anant, and E. Dipoulos. (1990). A Schumpeterian Model of the Product Life Cycle. American Economic Review80:1077–91.

    Google Scholar 

  • Solow, R. (1957). Technical Change and the Aggregate Production Function. Review of Economics and Statistics39:312–20.

    Article  Google Scholar 

  • The World Bank. 2002. Transition – The First Ten Years: Analysis and Lessons for Eastern Europe and the Former Soviet Union. Washington, D.C.: The World Bank.

    Google Scholar 

  • UNCTAD. (2011). A Framework for Science, Technology, and Innovation Policy Reviews. New York: UNCTAD.

    Google Scholar 

  • World Bank. (2014). World Bank Group Support for Innovation and Entrepreneurship: An Independent Evaluation. Independent Evaluation Group (IEG) Studies. Washington, DC: World Bank Group.

    Google Scholar 

  • Young, A. (1998). Growth without Scale Effects. Journal of Political Economy106:41–63.

    Article  Google Scholar 

  • Zecchini, S. ed. (1997). Lessons from the Economic Transition: Central and Eastern Europe in the 1990s. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. National University of Kyiv-Mohyla Academy, Kyiv, Ukraine

    Iurii Bazhal

Authors
  1. Iurii Bazhal
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Bazhal, I. (2017). Innovations: A known Unknown Phenomenon of Economy. In: The Political Economy of Innovation Development. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-54852-4_2

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-54852-4_2

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-54851-7

  • Online ISBN: 978-3-319-54852-4

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation