Schumpeter, Joseph A.

Schumpeter, Joseph A.

(1883–1950) an Austrian economist who developed a theory to explain BUSINESS CYCLES in his book Capitalism, Socialism and Democracy (1942). According to Schumpeter, the key to ECONOMIC GROWTH is the innovative (see INNOVATION) ENTREPRENEUR who takes RISKS and introduces new technologies to stimulate economic activity, replacing old technologies by a process of‘creative destruction’. However, because such innovative activity takes place irregularly spurts of such vigorous production are likely to be followed by both collapse and crisis. See also MONOPOLY, PRIVATE-ENTERPRISE CONOMY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Schumpeter, Joseph A. Beginnings (early version of the first part of History of Economic Analysis).
Schumpeter, Joseph A. Five Lectures on The Progress of Theoretical Economics During the Last Twenty-Five Years.