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Innovation theory of business cycles and economic growth

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  • BAZHAL, IURII

Abstract

This article tries to give evidences the Schumpeterian innovation theory of business cycles gives us the most satisfactory understanding interrelations between business cycles and economic growth. It is shown that roots of this conceptual approach were created in 1894 by monograph of M.I.Tugan-Baranovsky, who can be recognized as precursor of the Schumpeter’s Theory of Economic Development. The article presents historical analysis of the genesis and genetic line of the innovation theory of economic development till the modern Neo-Schumpeterian conceptions of technological paradigms. It lays methodological basis for the conclusion the innovation technological change and the corresponding restructuring of national economy must be recognized as the main measures to overpower the recession and to ensure the economic growth in long-run perspective.

Suggested Citation

  • Bazhal, Iurii, 2013. "Innovation theory of business cycles and economic growth," MPRA Paper 53688, University Library of Munich, Germany, revised 14 Feb 2014.
    • Handle: RePEc:pra:mprapa:53688
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Tugan-Baranovsky M.I.; Schumpeter J.A.; Neo-Schumpeterian concepts; business cycles theories; technological paradigm; innovation model of economic growth;
    All these keywords.

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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