We develop a theory of cyclical unemployment, which relates the processes of job creation and job destruction over the business cycle, to the processes of restructuring, innovation and implementation arising from a model of endogenous cyclical growth. Due to a moral hazard problem, production workers are paid efficiency wages and experience involuntary unemployment. The model captures two key c...

TOWARD A NEO-SCHUMPETERIAN THEORY OF THE FIRM

Formal models allow us to make verbal notions operational and confront them with data. Schumpeterian growth theory has “operationalized” Schumpeter’s notion of creative destruction -the process by which new innovations replace older technologies-, in two ways. First, it has developed models based on creative destruction that shed new light on several microeconomic aspects of the growth process:...

Abstract This paper incorporates endogenous migration into a second-generation Schumpeterian growth model to study how migration, innovation, and interact with one another. The finds that always enhances the rates of innovation receiving economy, but implementing pro-innovation policies in economy does not lead more when gap technical knowledge between countries is fixed over time. However, tec...

despite wide-range of studies in the theories of the entrepreneurship field, few studies have offered a pervasive conceptual model or a general consensus of the existing theories. hence, this paper attempts to extend a comprehensive principle on entrepreneurship. in general, there are two common interpretations of the term ‘entrepreneurship’. one of the common views is schumpeterian, emphasizin...

Using data for six Asian miracle economies over the period from 1953 to 2006, this paper examines the extent to which growth has been driven by R&D and tests which second-generation endogenous growth model is most consistent with the data. The results give strong support to Schumpeterian growth theory but only limited support to semi-endogenous growth theory. Furthermore, it is shown that R&D h...

This paper shows that standard Schumpeterian theory does not imply that the incumbent monopolist has too little incentive to carry out R&D aimed at displacing its own product. If the patent holder is rational as is any other R&D investor, she will know that in equilibrium her patent’s obsolescence shall not be affected by her own R&D investment, because all the R&D firms operate under perfect c...