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Testing the Schumpeterian Hypothesis

Zoltan Acs () and David Audretsch ()

Eastern Economic Journal, 1988, vol. 14, issue 2, 129-140

Abstract: The late Joseph Schumpeter had opposing views about economic development. In his earlier work, he argued that innovation is promoted by the presence of entrepreneurs outside the firm. Later, he argued that innovation activity is promoted by large firms, for whom the innovation process in endogenous. This paper uses a direct measure of innovation to test the later Schumpeterian hypothesis. The authors find support for bo th the early and later Schumpeterian hypotheses about innovation.

Date: 1988
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Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

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