According to the conventional Schumpeterian view, recessions improve resource allocation by driving out less productive producers. We posit that recessions bring an additional scarring e¤ect by impeding the developments of potentially superior producers, which can be destroyed during their infancy and never realize their potential. A model combining creative destruction with learning is develop...

We extend the basic Schumpeterian endogenous growth model by allowing incumbents to undertake innovations to improve their products, while entrants engage in more “radical” innovations to replace incumbents. Our model provides a tractable framework for the analysis of growth driven by both entry of new firms and productivity improvements by continuing firms. The model generates a non-degenerate...

This survey provides a selective review of the literature on patent policy, innovation and economic growth. The system is useful policy tool for stimulating given its importance technological progress However, multidimensional system, which features multiple instruments. In this survey, we some commonly discussed instruments, such as length, breadth blocking patents, also use canonical Schumpet...

This study explores the dynamic effects of patent policy on innovation and income inequality in a Schumpeterian growth model with endogenous market structure heterogeneous households. We find that strengthening protection has positive effect economic or an inverted-U when number differentiated products is fixed short run. However, adjusts endogenously, become negative long also calibrate to US ...

Abstract Supporting ecological innovations and economic activities which lead to environmental protection is one of the important challenges decision-makers. The above related problem specification mechanisms resulting in introducing economy. original vision evolution determined by innovation was firstly presented Joseph Schumpeter who identified essential innovative changes as well indicated d...

Knowledge plays an increasingly important role in shaping the dynamics of an economy. A static Paretian welfare economics is therefore inadequate, and needs to be supplemented by a dynamic (Schumpeterian) welfare theory. A dynamic welfare economics acknowledges the role of knowledge and communication. As knowledge develops cumulatively in a social environment, knowledge may not be readily diffu...

Knowledge management often generates theories that are too general or abstract to be easily testable. In some cases, simulation modeling can help. In this paper we develop an agent-based simulation model derived from a conceptual framework, the Information Space or I-Space and use it to explore the differences between a neoclassical and a Schumpeterian information environment. After introducing...

This research is inspired by Schumpeter’s theory of economic development and aims at analysing the outcomes innovative non-innovative changes implemented within evolution. A multiplicity processes leads to complexity structure In order examine processes, role circular flow, i.e. a form economy, which for Schumpeter was both starting ending points in analysis development, should be taken into ac...