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Why was Schumpeter not more concerned with patents?

Author

Listed:
  • Rémy Guichardaz

    (Université de Strasbourg, Université de Lorraine, CNRS, BETA)

  • Julien Pénin

    (Université de Strasbourg, Université de Lorraine, CNRS, BETA)

Abstract

Although Schumpeter is widely acknowledged as a pioneer of the economic analysis of innovation and although the patent system occupies an important place today in this field of research, Schumpeter did not see patents as playing a key role for fostering innovation. He mentioned them only a couple of times, in passing, and never developed any scientific analysis of the patent system. In this paper, we propose an explanation of this blind spot based on three characteristics of Schumpeter’s thought: first, entrepreneurs are largely motivated by non-monetary elements; second, they enjoy a first-mover advantage because imitation is difficult; third, Schumpeter viewed the innovation process as a relentless race in which firms are doomed to innovate in order to avoid disappearing. The Schumpeterian view of the economic process therefore largely reduces the economic importance of patents.

Suggested Citation

  • Rémy Guichardaz & Julien Pénin, 2019. "Why was Schumpeter not more concerned with patents?," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1361-1369, September.
    • Handle: RePEc:spr:joevec:v:29:y:2019:i:4:d:10.1007_s00191-019-00633-y
    DOI: 10.1007/s00191-019-00633-y
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    References listed on IDEAS

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    1. Cristiano Antonelli, 2015. "Innovation as a Creative Response. A Reappraisal of the Schumpeterian Legacy," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 23(2), pages 99-118.
    2. Gilbert Richard J, 2006. "Competition and Innovation," Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-23, December.
    3. Machlup, Fritz & Penrose, Edith, 1950. "The Patent Controversy in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 10(1), pages 1-29, May.
    4. Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 159-215, National Bureau of Economic Research, Inc.
    5. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(2), pages 149-159, November.
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    Cited by:

    1. Adam Karbowski, 2021. "Unproductive entrepreneurship and patents," Bank i Kredyt, Narodowy Bank Polski, vol. 52(5), pages 473-494.

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    More about this item

    Keywords

    Patents; Schumpeter; Innovation; Incentives; Creative destruction;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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