Innovation, competition, and growth: Schumpeterian ideas within a Hicksian framework

Jean-Luc Gaffard

A chapter in Schumpeterian Perspectives on Innovation, Competition and Growth, 2009, pp 7-23 from Springer

Abstract: Abstract Schumpeter’s ideas, which should be the basis of any evolutionary approach to the relations between innovation, competition and growth, are revisited and interpreted within the analytical framework proposed by Hicks in Capital and Time. Two main results emerge. First, the introduction of any new technology may lead to higher unemployment and reduced productivity; only an active monetary (and banking policy) will allow the economy to capture productivity gains. Second, within an industry confronted by recurrent technological changes, certain monopoly practices may be needed for this industry to converge towards an efficient market structure determined by the content of technology and the profile of demand. These results suggest some reconsideration of the macroeconomic and industrial or competition policies designed, in Europe, to cope with both technical change and globalization in modern economies.

Keywords: Competition; Creative destruction; Growth; Innovation; Market structure; Stabilisation; Volatility (search for similar items in EconPapers)
JEL-codes: L1 (search for similar items in EconPapers)
Date: 2009
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Journal Article: Innovation, competition, and growth: Schumpeterian ideas within a Hicksian framework (2008)
Working Paper: Innovation, competition, and growth: Schumpeterian ideas within a Hicksian framework (2008)
Working Paper: Innovation, competition, and growth: Schumpeterian ideas within a Hicksian framework (2008)
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DOI: 10.1007/978-3-540-93777-7_2

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