Schumpeter and the end of Western Capitalism

Kingston, William

doi:10.1007/s00191-013-0312-x

Cited by 8 publications

(4 citation statements)

References 23 publications

(3 reference statements)

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“…that financial development comes from economic growth. Meanwhile, a consensus has emerged in the finance and economics literature that, in general, innovation is a positive influence on economic growth (Sharma, 2007;Kingston, 2014). Studies assessing data for highly developed economies conclude that economic growth objectives are reached by having access to global innovation networks, i.e.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The Effects on Innovation from Financial Sector Development: Evidence from Developing Countries

Kapidani¹,

Luçi²

2019

JOC

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The subject of financial system development is widely studied in the finance literature as an indicator of economic growth and a driver of technological innovation supporting the mobilization of capital for growth. However, varying results are obtained when examining developed countries compared to the emerging countries. Developing countries are characterized by a lower investment in innovation, and lower levels of competitiveness in terms of research and development funding, fewer research academic institutions, but also lower incentives for private innovation by enterprises. The purpose of this paper is to examine the relationship between financial development indicators and innovation by analyzing data for 15 developing countries within the time frame of 1996-2016. The financial system is analyzed in two main pillars: credit institutions and equity markets. The number of innovation patent applications is the dependent variable of the study, i.e. as an indicator of a country's innovative performance. The results of the study show that a higher level of crediting by the banking sector will positively affect the number of patent applications. Credit mobilization by other financial intermediaries in the financial system such as equity markets or non-banking institutions show a lower efficiency in boosting innovation activities, resulting in the opposite effects regarding the number of patent applications. Countries with a higher level of education will show more efforts toward innovation and the development of innovative practices. On the other hand, higher competitiveness among companies in terms of technology innovation and processes is expected to boost the demand for funds in the financial system, leading to the improvement in system development.

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Section: Theoretical Frameworkmentioning

confidence: 99%

The Effects on Innovation from Financial Sector Development: Evidence from Developing Countries

Kapidani¹,

Luçi²

2019

JOC

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“…The problem is that the modern "ephor" is not always interested in implantation of innovation in the economy. "Moreover, the fact that seven of the most famous banks in the world have admitted massive breaches of US sanctions designed to inhibit Iran from developing an atomic bomb, acts of treason against world security, confirms that the search for corporate banking profits is now without constraint" (Kingston, 2014). Nowadays banking systems are signum temporis of Schumpeter's "fettered capitalism".…”

Section: Contemporary Application Of the Analyzed Conceptmentioning

confidence: 99%

“Fettered” and “unfettered” capitalism in J.A. Schumpeter’s concept of Tax State and economic development – issues in banking perspective

Śledzik

2016

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Economic development and transformation processes have become much more intense in economic reality in the last years than they have ever been before. At this time a lot of questions were raised about the causes of the actual Global Crisis, future crises, the factors affecting the modern economy, about the essence of contemporary capitalism, demographic problems and overgrown bureaucracy. The most spectacular threat to capitalism, (based on private entrepreneurship) according to Schumpeter, stems from the high, growing and progressive taxation. Schumpeter saw clearly that the financing of public goods and services (requiring taxes, maybe even relatively high) is something other than a clerical control of the economic system that violates the natural economic mechanism. Moreover, Schumpeter says explicitly that an entrepreneur does not have to be one person, he even states that the country (state) itself, or its agenda, can act as an entrepreneur. Therefore, it can be concluded that we may have to deal with “Tax State”, which is typical for “fettered capitalism”, and with “entrepreneurial state”, which is typical for “unfettered capitalism”. The main goal of this paper is to present two different approaches to the economic development concept: Schumpeter’s “fettered” and “unfettered” capitalism in the context of “Tax State” and interventionism. The Author analyzes presented concept in contemporary issues from the banking perspective. In the paper, the Author used critical analysis as a research method. This allowed to identify gaps in the current state of knowledge and the scientific discussion focused on J.A. Schumpeter’s theoretical concept. Analysis was performed in 2015.

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“…Nonetheless, he ultimately forecast that financial capitalists would conspire to defeat his heroic entrepreneurs, and gum up the works of evolution. Beginning with the persistent extension of limited liability to financial firms as well as he explosion of unproductive wealth (Kingston 2012) amid the fortification of global mercantilism (Daneke 1998), not to mention the diversion of armies of engineers from industrial activities, the processes of financialization eventually undermined the very essence Schumpeterian innovation. As Brian Arthur (2013) points out complexity economics/political economy (which he also refers to as an Becological approach^) is especially well suited to explain how things are likely to break down, and how the interconnections broadcast or cascade the failure.…”

Section: F O R a P P R O V A L From Financialization To The Re-institmentioning

confidence: 99%

Ghoshal’s Ghost: Financialization and the End of Management Theory

Daneke

Sager

2015

Philosophy of Management

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Sumantra Ghoshal's condemnation of Bbad management theories^that were Bdestroying good management practices^has not lost any of its salience, after a decade. Management theories anchored in agency theory (and neo-classical economics generally) continue to abet the financialization of society and undermine the functioning of business. An alternative approach (drawn from a more classic institutional, new ecological, and refocused ethical approaches) is reviewed.

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Schumpeter and the end of Western Capitalism

Cited by 8 publications

References 23 publications

The Effects on Innovation from Financial Sector Development: Evidence from Developing Countries

The Effects on Innovation from Financial Sector Development: Evidence from Developing Countries

“Fettered” and “unfettered” capitalism in J.A. Schumpeter’s concept of Tax State and economic development – issues in banking perspective

Ghoshal’s Ghost: Financialization and the End of Management Theory

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