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Innovation in The European Union Within The Framework of The Theory of Creative Destruction: An Overview After The Global Financial Crisis 2008

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  • Altuğ Günar
  • Seyhun Doğan

Abstract

Innovations are vital for economic development. Schumpeter, the famous economic theorist who drew attention to the innovation activities, was the first to reveal that capitalism has a structure that realizes development through innovations. Along with the 2000s, the European Union adopted a Schumpeterian approach and launched the Lisbon Strategy, however, this strategy has not been successful for various reasons. In this context, the Schumpeterian theory of “creative destruction” is well suited for evaluating innovation activities in the European Union. The main purpose of the study is to analyze the innovation activities in the European Union through research and development expenditures, business research and development expenditures, and the numbers of patent applications in the context of the theory of “creative destruction” put forward by Schumpeter. In this context, it was tried to reveal the Schumpeterian innovation capacity of the European Union between 2008 and 2018 in line with the data obtained from Eurostat. As a result of the study, it was concluded that innovation activities in the European Union could not fully realize the creative destruction effect and that there is a serious texture incompatibility in terms of economic structures within the EU member countries.

Suggested Citation

  • Altuğ Günar & Seyhun Doğan, 2020. "Innovation in The European Union Within The Framework of The Theory of Creative Destruction: An Overview After The Global Financial Crisis 2008," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 5(3), pages 682-705.
    • Handle: RePEc:ahs:journl:v:5:y:2020:i:3:p:682-705
    DOI: 10.30784/epfad.822774
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    References listed on IDEAS

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    More about this item

    Keywords

    Schumpeter; Creative Destruction; Innovation; Entrepreneurship; European Union;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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