Creative Destruction

Edited by the late J. Stanley Metcalfe, formerly Emeritus Professor, University of Manchester and Ronnie Ramlogan, Senior Lecturer, Alliance Manchester Business School, University of Manchester, UK

• Volume IContents:AcknowledgementsIntroduction J. Stanley Metcalfe and Ronald RamloganPART ICREATIVE DESTRUCTION AND THE SCHUMPETERIAN VISION A Schumpeter and his Legacy1. Joseph Schumpeter (1928), ‘The Instability of Capitalism’, Economic Journal, 38 (151), September, 361–862. Joseph A. Schumpeter (1947), ‘The Creative Response in Economic History’, Journal of Economic History, VII (2), November, 149–593. Markus C. Becker and Thorbjørn Knudsen (2002), ‘Schumpeter 1911: Farsighted Visions on Economic Development’, American Journal of Economics and Sociology, 61 (2), April, 387–4034. John E. Elliott (1983), ‘Schumpeter and the Theory of Capitalist Economic Development’, Journal of Economic Behaviour and Organization, 4 (4), December, 277–308B Comparative Assessments5. Nathan Rosenberg (1994), ‘Joseph Schumpeter: Radical Economist’, in Yuichi Shionoya and Mark Perlman (eds), Schumpeter in the History of Ideas, Ann Arbor, MI, USA: University of Michigan Press, 41–576. Nathan Rosenberg (2011), ‘Was Schumpeter a Marxist?’, Industrial and Corporate Change, 20 (4), 1215–22 7. Heinz D. Kurz (2012), ‘Schumpeter’s New Combinations: Revisiting his Theorie der Wirtschaftlichen Entwicklung on the Occasion of its Centenary’, Journal of Evolutionary Economics, 22 (5), October, 871–998. John E. Elliott (1980), ‘Marx and Schumpeter on Capitalism’s Creative Destruction: A Comparative Restatement’, Quarterly Journal of Economics, 95 (1), August, 45–689. Erich W. Streissler (1994), ‘The Influence of German and Austrian Economics on Joseph A. Schumpeter’, in Yuich Shionoya and Mark Perlman (eds), Schumpeter in the History of Ideas, Ann Arbor, MI, USA: University of Michigan Press, 13–3810. Hugo Reinert and Erik S. Reinert (2006), ‘Creative Destruction in Economics: Nietzsche, Sombart, Schumpeter’, in Jürgen G. Backhaus and Wolfgang Drechsler (eds), Friedrich Nietzsche (1844–1900), Chapter 3, New York, NY, USA: Springer US, 55–8511. Renee Prendergast (2006), ‘Schumpeter, Hegel and the Vision of Development’, Cambridge Journal of Economics, 30 (2), March, 253–7512. Enrico Santarelli and Enzo Pesciarelli (1990), ‘The Emergence of a Vision: The Development of Schumpeter’s Theory of Entrepreneurship’, History of Political Economy, 22 (4), 667–9613. Panayotis G. Michaelides and John G. Milios (2009), ‘Joseph Schumpeter and the German Historical School’, Cambridge Journal of Economics, 33 (3), May, 495–51614. Günther Chaloupek (1995), ‘Long-term Economic Perspectives Compared: Joseph Schumpeter and Werner Sombart’, European Journal of History of Economic Thought, 2 (1), Spring, 127–4915. Erik S. Reinert (2002), ‘Schumpeter in the Context of Two Canons of Economic Thought’, Industry and Innovation, 9 (1–2), April–August, 23–3916. Riccardo Faucci (2007), ‘Max Weber’s Influence on Schumpeter’, History of Economic Ideas, Special Edition: New Perspectives on the Schumpeter Frontier, XV (1), 111–3317. Maria T. Brouwer (2002), ‘Weber, Schumpeter and Knight on Entrepreneurship and Economic Development’, Journal of Evolutionary Economics, 12 (1), March, 83–10518. L.A. O’Donnell (1973), ‘Rationalism, Capitalism, and the Entrepreneur: the Views of Veblen and Schumpeter’, History of Political Economy, 5 (1), Spring, 199–214PART IIENTERPRISE AND INNOVATION A The Entrepreneur19. Mark Dodgson (2011), ‘Exploring New Combinations in Innovation and Entrepreneurship: Social Networks, Schumpeter and the Case of Josiah Wedgewood (1730–1795)’, Industrial and Corporate Change, 20 (4), August, 1119–5120. David S. Landes (1979), ‘Watchmaking: A Case Study in Enterprise and Change’, Business History Review, LIII (1), Spring, 1–39 21. Richard Swedberg (2008), ‘Rebuilding Schumpeter’s Theory of Entrepreneurship’, in Yuichi Shionoya and Tamotsu Nishizawa (eds), Marshall and Schumpeter on Evolution: Economic Sociology of Capitalist Development, Chapter 9, Cheltenham, UK and Northampton, MA, USA: Edward Elgar Publishing, 188–20322. Ulrich Witt (1998), ‘Imagination and Leadership – The Neglected Dimension of an Evolutionary Theory of the Firm’, Journal of Economic Behaviour and Organisation, 35 (2), April, 161–7723. Donald A. Schon (1963), ‘Champions for Radical New Inventions’, Harvard Business Review, 41 (2), 77–8624. Howard E. Aldrich and Tiantian Yang (2014), ‘How do Entrepreneurs Know What to Do? Learning and Organizing in New Ventures’, Journal of Evolutionary Economics, 24 (1), January, 59–8225. Israel M. Kirzner (2001), ‘Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur’, Review of Austrian Economics, 11 (1–2), January, 5–17B Invention and Innovation26. Robert K. Merton (1935), ‘Fluctuations in the Rate of Industrial Invention’, Quarterly Journal of Economics, 49 (3), May, 454–7427. Giovanni Dosi (1982), ‘Technological Paradigms and Technological Trajectories’, Research Policy, 11 (3), June, 147–6228. Johann Peter Murmann and Koen Frenken (2006), ‘Toward a Systematic Framework for Research on Dominant Designs, Technological Innovations, and Industrial Change’, Research Policy, 35 (7), September, 925–5229. Fernando F. Suárez and James M. Utterback (1995), ‘Dominant Designs and the Survival of Firms’, Strategic Management Journal, 16 (6), September, 415–3030. Michael L. Tushman and Philip Anderson (1986), ‘Technological Discontinuities and Organizational Environments’, Administrative Science Quarterly, 31 (3), September, 439–6531. Rebecca M. Henderson and Kim B. Clark (1990), ‘Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms’, Administrative Science Quarterly, Special Issue: Technology, Organizations, and Innovation, 35 (1), March, 9–3032. Vernon W. Ruttan (1956), ‘Usher and Schumpeter on Invention, Innovation, and Technological Change’, Quarterly Journal of Economics, 73 (4), November, 595–606PART III FIRMS AND MARKETS IN THE PROCESS OF CREATIVE DESTRUCTION: CREATIVE DESTRUCTION AND THE THEORY OF THE FIRM 33. F.M. Scherer (1992), ‘Schumpeter and Plausible Capitalism’, Journal of Economic Literature, 30 (3), September, 1416–33 34. Paul J. McNulty (1974), ‘On Firm Size and Innovation in the Schumpeterian System’, Journal of Economic Issues, VIII (3), September, 627–3235. Sidney G. Winter (2006), ‘Toward a Neo-Schumpeterian Theory of the Firm’, Industrial and Corporate Change, 15 (1), April, 125–4136. Richard R. Nelson (1991), ‘Why Do Firms Differ, and How Does it Matter?’, Strategic Management Journal, Special Issue: Fundamental Research Issues in Strategy and Economics, 12, Winter, 61–7437. David J. Teece, Gary Pisano and Amy Shuen (1997), ‘Dynamic Capabilities and Strategic Management’, Strategic Management Journal, 18 (7), August, 509–3338. Sidney G. Winter (1995), ‘Four Rs of Profitability: Rents, Resources, Routines, and Replication’ in Cynthia A. Montgomery (ed.), Resource-Based and Evolutionary Theories of the Firm: Towards a Synthesis, Chapter 7, Boston, MA, USA, Dordrecht, Germany and London, UK: Kluwer Academic Publishers, 147–78Volume IIContents:Introduction J. Stanley Metcalfe and Ronald RamloganPART IFIRMS AND MARKETS IN THE PROCESS OF CREATIVE DESTRUCTION: CREATIVE DESTRUCTION AND THE EVOLUTIONARY MARKET PROCESS 1. Nicholas Kaldor (1972), ‘The Irrelevance of Equilibrium Economics’, Economic Journal, 82 (328), December, 1237–552. Heinz D. Kurz (2008), ‘Innovation and Profits: Schumpeter and the Classical Heritage’, Journal of Economic Behavior and Organization, 67 (1), July, 263–783. F.A. Hayek (1968), ‘Competition as a Discovery Procedure’, Quarterly Journal of Austrian Economics, 5 (3), Fall, 9–234. Brian J. Loasby (2001), ‘Time, Knowledge and Evolutionary Dynamics: Why Connections Matter’, Journal of Evolutionary Economics, 11 (4), August, 393–4125. Jason Potts (2001), ‘Knowledge and Markets’, Journal of Evolutionary Economics, 11 (4), August, 413–316. Esben Sloth Andersen (2004), ‘Population Thinking, Price’s Equation and the Analysis of Economic Evolution’, Evolutionary and Institutional Economics Review, 1 (1), November, 127–487. John Foster (2005), ‘From Simplistic to Complex Systems in Economics’, Cambridge Journal of Economics, 29 (6), November, 873–928. Peter Allen (2013), ‘Complexity, Uncertainty and Innovation’, Economics of Innovation and New Technology, 22 (7), 702–25PART IIFIRMS AND MARKETS IN THE PROCESS OF CREATIVE DESTRUCTION: THE EMPIRICS OF CREATIVE DESTRUCTION 9. Steven Klepper (1997), ‘Industry Life Cycles’, Industrial and Corporate Change, 6 (1), 145–8210. Guido Buenstorf and Steven Klepper (2010), ‘Submarket Dynamics and Innovation: The Case of the US Tire Industry’, Industrial and Corporate Change, 19 (5), 1563–8711. Uwe Cantner, Jens J. Krüger and Kristina von Rhein (2009), ‘Knowledge and Creative Destruction over the Industry Life Cycle: The Case of the German Automobile Industry’, Economica, 76 (301), February, 132–4812. Eric J. Bartelsman and Mark Doms (2000), ‘Understanding Productivity: Lessons from Longitudinal Microdata’, Journal of Economic Literature, XXXVIII (3), September, 569–9413. Timothy Dunne, Mark J. Roberts and Larry Samuelson (1989), ‘The Growth and Failure of U.S. Manufacturing Plants’, Quarterly Journal of Economics, 104 (4), November, 671–9814. Michael A. Cusumano, Yiorgos Mylonadis and Richard S. Rosenbloom (1992), ‘Strategic Maneuvering and Mass-Market Dynamics: The Triumph of VHS over Beta’, Business History Review, 66 (1), Spring, 51–9415. Franco Malerba, Richard Nelson, Luigi Orsenigo and Sidney Winter (1999), ‘”History-friendly” Models of Industry Evolution: The Computer Industry’, Industrial and Corporate Change, 8 (1), March, 3–40PART IIIFIRMS AND MARKETS IN THE PROCESS OF CREATIVE DESTRUCTION: CREATIVE DESTRUCTION AND FINANCE 16. Robert G. King and Ross Levine (1993), ‘Finance and Growth: Schumpeter Might be Right’, Quarterly Journal of Economics, 108 (3), August, 717–3717. Faruk Ülgen (2014), ‘Schumpeterian Economic Development and Financial Innovations: A Conflicting Evolution’, Journal of Institutional Economics, 10 (2), June, 257–7718. Paul Gompers and Josh Lerner (2001), ‘The Venture Capital Revolution’, Journal of Economic Perspectives, 15 (2), Spring, 145–6819. Mary A. O’Sullivan (2006), ‘Living with the U.S. Financial System: The Experiences of General Electric and Westinghouse Electric in the Last Century’, Business History Review, 80 (4), Winter, 621–55PART IVTHE CONSEQUENCES FOR GROWTH, DEVELOPMENT AND ECONOMIC WELFARE A Creative Destruction and Economic Growth20. Richard R. Nelson and Gavin Wright (1992), ‘The Rise and Fall of American Technological Leadership: The Postwar Era in Historical Perspective’, Journal of Economic Literature, XXX (4), December, 1931–6421. Simon Kuznets (1977), ‘Two Centuries of Economic Growth: Reflections on U.S. Experience’, American Economic Review, 67 (1), February, 1–1422. Arnold C. Harberger (1998), ‘A Vision of the Growth Process’, American Economic Review, 88 (1), March, 1–3223. Philippe Aghion and Peter Howitt (1992), ‘A Model of Growth through Creative Destruction’, Econometrica, 60 (2), March, 323–5124. Richard R. Nelson and Sidney G. Winter (1974), ‘Neoclassical vs. Evolutionary Theories of Economic Growth: Critique and Prospectus’, Economic Journal, 84 (336), December, 886–90525. Gerald Silverberg, Giovanni Dosi and Luigi Orsenigo (1988), ‘Innovation, Diversity and Diffusion: A Self-Organisation Model’, Economic Journal, 98 (393), December, 1032–5426. Pier Paolo Saviotti and Andreas Pyka (2004), ‘Economic Development by the Creation of New Sectors’, Journal of Evolutionary Economics, 14 (1), January, 1–3527. Allyn A. Young (1928), ‘Increasing Returns and Economic Progress’, Economic Journal, XXXVIII (152), December, 527–4228. J. Stan Metcalfe, John Foster and Ronnie Ramlogan (2006), ‘Adaptive Economic Growth’, Cambridge Journal of Economics, 30 (1), January, 7–32BEconomic Development29. Douglas Rimmer (1961), ‘Schumpeter and the Underdeveloped Countries’, Quarterly Journal of Economics, 75 (3), August, 422–5030. Perm Singh Laumas (1961), ‘Schumpeter’s Theory of Economic Development and Underdeveloped Countries’, Quarterly Journal of Economics, 76 (4), November, 653–931. Richard R. Nelson and Howard Pack (1999), ‘The Asian Miracle and Modern Growth Theory’, Economic Journal, 109 (437), July, 416–36C Normative Perspectives32. Ulrich Witt (1996), ‘Innovations, Externalities and the Problem of Economic Progress’, Public Choice, 89 (1/2), October, 113–3033. Wilfred Dolfsma (2005), ‘Towards a Dynamic (Schumpeterian) Welfare Economics’, Research Policy, 34 (1), February, 69–8234. Christian Schubert (2013), ‘How to Evaluate Creative Destruction: Reconstructing Schumpeter’s Approach’, Cambridge Journal of Economics, 37 (2), March, 227–5035. Peter E. Earl and Jason Potts (2004), ‘The Market for Preferences’, Cambridge Journal of Economics, 28 (4), July, 619–3336. Geoffrey M. Hodgson (2014), ‘The Evolution of Morality and the End of Economic Man’, Journal of Evolutionary Economics, 24 (1), January, 83–106Index