IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v25y2015i1p133-145.html
   My bibliography  Save this article

The Schumpeter–Hilferding Nexus

Author

Listed:
  • Panayotis Michaelides
  • John Milios

Abstract

The paper interprets certain parts of Joseph Schumpeter’s oeuvre in association with the writings of Rudolf Hilferding. For instance, we show that Hilferding’s conception of economic development has striking similarities with Schumpeter’s respective thesis. Also, Hilferding expressed the thesis that ‘the size and technical equipment of the monopolistic combination ensure its superiority’ which has striking similarities with the so-called Schumpeterian Hypothesis. Furthermore, Hilferding made a distinction between the entrepreneur who is in charge of the use of capital in production and the capitalist who advances his capital and bears the risk. There, Hilferding identified another personality who has similar tasks to those of an innovative manager. It is exactly this separation of roles which is at the core of Schumpeter’s famous analysis. Moreover, regarding credit, for both theoreticians, it is determined by its demand side i.e. creation of credit money resulting from the demand for investment funds and is indispensable for the functioning of capitalism. In this context, their views on economic instability have further similarities, since for both theorists, development presupposes an innovation, which enables the firm to earn an extra profit and stimulates the demand for credit in order to finance new investments through credit creation. As for socialism, Hilferding regarded it as the organization of production not by and for the benefit of capitalist magnates but by and for society as a whole, whereas for Schumpeter socialism is an institutional arrangement that vests the management of the productive forces with some public authority. Finally, regarding imperialism, Schumpeter differentiated himself from Hilferding and considered it to be an ‘old’ inheritance from pre-modern capitalist eras, which was bound to disappear contrarily to Hilferding, who regarded imperialism as a ‘new’, characteristic of capitalism in its ‘latest’ stage. In brief, some of Schumpeter’s ideas are probably not quite as unique as they appeared to be, since many of them could be described as a reworking of Hilferding’s views. Apparently, Schumpeter’s originality is, at least partly, based on the approaches on which he built his oeuvre. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Panayotis Michaelides & John Milios, 2015. "The Schumpeter–Hilferding Nexus," Journal of Evolutionary Economics, Springer, vol. 25(1), pages 133-145, January.
    • Handle: RePEc:spr:joevec:v:25:y:2015:i:1:p:133-145
    DOI: 10.1007/s00191-014-0361-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00191-014-0361-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00191-014-0361-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Panayotis G. Michaelides & Kostas Theologou, 2010. "Tarde's influence on Schumpeter: technology and social evolution," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(5), pages 361-373, April.
    2. Angelos Vouldis & Panayotis Michaelides & John Milios, 2011. "Emil Lederer and the Schumpeter-Hilferding-Tugan-Baranowsky Nexus," Review of Political Economy, Taylor & Francis Journals, vol. 23(3), pages 439-460.
    3. David Reisman, 2004. "Schumpeter’s Market," Books, Edward Elgar Publishing, number 2880.
    4. John E. Elliott, 1980. "Marx and Schumpeter on Capitalism's Creative Destruction: A Comparative Restatement," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(1), pages 45-68.
    5. Robert Leeson, 1997. "Influence (or The Lack of It) in the Economics Profession: The Case of Lucien Albert Hahn," History of Political Economy, Duke University Press, vol. 29(4), pages 635-638, Winter.
    6. John Milios & Dimitris P. Sotiropoulos, 2009. "Capitalist Mode of Production and Monopolies," Palgrave Macmillan Books, in: Rethinking Imperialism, chapter 6, pages 112-120, Palgrave Macmillan.
    7. Karsten von Blumenthal, 2008. "Economic theorist and 'entrepreneur of popularisation': Schumpeter as Finance Minister and journalist," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 15(4), pages 641-671.
    8. E. M. Winslow, 1931. "Marxian, Liberal, and Sociological Theories of Imperialism," Journal of Political Economy, University of Chicago Press, vol. 39(6), pages 713-713.
    9. O. H. Taylor, 1951. "Schumpeter and Marx: Imperialism and Social Classes in the Schumpeterian System," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 65(4), pages 525-555.
    10. Giersch, Herbert, 1984. "The Age of Schumpeter," American Economic Review, American Economic Association, vol. 74(2), pages 103-109, May.
    11. Kamien,Morton I. & Schwartz,Nancy L., 1982. "Market Structure and Innovation," Cambridge Books, Cambridge University Press, number 9780521293853, December.
    12. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dieter Bögenhold, 2018. "Schumpeter’s Split Between “Pure” Economics and Institutional Economics: Why Methodological Individualism Was Not Fully Considered," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 253-264, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michaelides, Panayotis G. & Milios, John G., 2004. "Hilferding's Influence on Schumpeter : A First Discussion," MPRA Paper 74462, University Library of Munich, Germany.
    2. Joshua S. Gans & David H. Hsu & Scott Stern, 2002. "When Does Start-Up Innovation Spur the Gale of Creative Destruction?," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 571-586, Winter.
    3. Joshua Gans & Scott Stern, 2003. "When does funding research by smaller firms bear fruit?: Evidence from the SBIR program," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 361-384.
    4. Michael L. Katz & Howard A. Shelanski, 2005. "Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 109-165, National Bureau of Economic Research, Inc.
    5. Becker Wolfgang & Peters Jürgen, 2005. "Innovation Effects of Science-Related Technological Opportunities / Innovationseffekte von technologischen Möglichkeiten aus dem Wissenschaftsbereich: Theoretical Considerations and Empirical Findings," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(2), pages 130-150, April.
    6. Ioannis Katselidis & Angelos Vouldis & Panayotis G. Michaelides, 2011. "Sumner Slichter and Emil Lederer on technological unemployment," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(6), pages 537-556, May.
    7. Erik Brouwer & Tom Poot & Kees Montfort, 2008. "The Innovation Threshold," De Economist, Springer, vol. 156(1), pages 45-71, March.
    8. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
    9. Mario De Marchi & Maurizio Rocchi, 2004. "Labour Market Rigidity And Firms' R&D Strategies," CERIS Working Paper 200404, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    10. Dalton, John T. & Logan, Andrew J., 2022. "The Man Who Discovered Capitalism: A documentary on Schumpeter for use in the classroom," International Review of Economics Education, Elsevier, vol. 41(C).
    11. Louis Amato & Christie Amato, 2000. "The Impact of High Tech Production Techniques on Productivity and Profitability in Selected U.S. Manufacturing Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(4), pages 327-342, June.
    12. Siebert, Horst, 1986. "Innovation, Beschäftigung und Wachstum," Discussion Papers, Series I 211, University of Konstanz, Department of Economics.
    13. Wittkopp, Antje, 2002. "Marktstruktur, Innovationsaktivität und Profitabilität der deutschen Ernährungswirtschaft: Das Beispiel Functional Food," FE Working Papers 0205, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    14. Panayotis G. Michaelides & John G. Milios & Angelos Vouldis & Spyros Lapatsioras, 2010. "Heterodox influences on Schumpeter," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(3), pages 197-213, February.
    15. Paul Robson & Helen Haugh & Bernard Obeng, 2009. "Entrepreneurship and innovation in Ghana: enterprising Africa," Small Business Economics, Springer, vol. 32(3), pages 331-350, March.
    16. Raines, J. Patrick & Leathers, Charles G., 2000. "Behavioral influences of bureaucratic organizations and the Schumpeterian controversy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(4), pages 375-388, July.
    17. Hai Wu & Anne-Maree Thomas & Sue Wright, 2020. "Using the R&D capitalisation choice to explain the scale benefits of R&D investment," Australian Journal of Management, Australian School of Business, vol. 45(4), pages 579-606, November.
    18. Alfred Kleinknecht, 2017. "Supply-side labour market reforms: a neglected cause of the productivity crisis," Working Papers 0027, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    19. Wolfgang Becker & Juergen Peters, 2000. "Technological Opportunities, Absorptive Capacities, and Innovation," Discussion Paper Series 195, Universitaet Augsburg, Institute for Economics.
    20. Hyukjoon Kim & Yongtae Park, 2008. "The impact of R&D collaboration on innovative performance in Korea: A Bayesian network approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 75(3), pages 535-554, June.

    More about this item

    Keywords

    Schumpeter; Hilferding; Influence; Austrian; B15; B25; B31; B52;
    All these keywords.

    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:25:y:2015:i:1:p:133-145. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.