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The elusive concept of innovation for Schumpeter, Marschak and the early econometricians

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  • Louçã, Francisco

Abstract

The modern concept of innovation is a crucial part of the analysis of capitalism as an adaptive system, and it is due to Schumpeter. Consequently, Schumpeter's role as a “prophet of innovation” has been rightly emphasized. This paper contributes to that history presenting some of the difficulties Schumpeter suffered as a formal representation of innovation was proposed by his fellow econometricians, as proved by the case of one of such dialogs, that with Jacob Marschak, at the time the director of the Cowles Commission and vice-president and then president of the Econometric Society. It is shown how Schumpeter elaborated his concepts of endogenous innovation and of industrial mutation as contrasted to the mechanical view of his fellow econometricians. Finally, the paper emphasizes the changes of the concept of randomness through the debate.

Suggested Citation

  • Louçã, Francisco, 2014. "The elusive concept of innovation for Schumpeter, Marschak and the early econometricians," Research Policy, Elsevier, vol. 43(8), pages 1442-1449.
    • Handle: RePEc:eee:respol:v:43:y:2014:i:8:p:1442-1449
    DOI: 10.1016/j.respol.2014.02.002
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    2. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
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    4. Janssen, M. & Stoopendaal, A.M.V. & Putters, K., 2015. "Situated novelty: Introducing a process perspective on the study of innovation," Research Policy, Elsevier, vol. 44(10), pages 1974-1984.
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    6. Shuangshuang Fan & Tomas Balezentis & William Mbanyele & Dalia Streimikiene, 2025. "Unlocking Informatization's Potential: The Impact of Smart City Initiatives on Inclusive Green Growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(4), pages 6050-6070, August.

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