IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2010-033.html

Innovation and Dynamism: Interaction between Systems and Technical Progress

Author

Listed:
  • János Kornai

Abstract

Literature on post-socialist transformation usually deals with the political, economic and social sides of it, although there have also been important changes in the field of technical advance in the last 20 years. One of capitalism's main virtues is the strong incentive it gives to dynamism, enterprise and the innovation process. Every revolutionary new product (for civilian use) has been brought about by the capitalist system. The socialist system was capable, at most, of developing new military products.

Suggested Citation

  • János Kornai, 2010. "Innovation and Dynamism: Interaction between Systems and Technical Progress," WIDER Working Paper Series wp-2010-033, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2010-033
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/wp2010-33.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eric Bartelsman & John Haltiwanger & Stefano Scarpetta, 2004. "Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries," World Bank Publications - Reports 9170, The World Bank Group.
    2. Yingyi Qian & Chenggang Xu, 1998. "Innovation and Bureaucracy Under Soft and Hard Budget Constraints," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(1), pages 151-164.
    3. Arnold Heertje, 2006. "Schumpeter on the Economics of Innovation and the Development of Capitalism," Books, Edward Elgar Publishing, number 3891.
    4. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
    5. János Kornai & Eric Maskin & Gérard Roland, 2003. "Understanding the Soft Budget Constraint," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1095-1136, December.
    6. repec:wbk:wbpubs:28241 is not listed on IDEAS
    7. repec:wbk:wbpubs:11855 is not listed on IDEAS
    8. Huang, Haizhou & Xu, Chenggang, 1998. "Soft Budget Constraint and the Optimal Choices of Research and Development Projects Financing," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 62-79, March.
    9. Janos Kornai, 2006. "The Great Transformation Of Central Eastern Europe: Success And Disappointment - First Published," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 2(4), pages 11-38.
    10. repec:wbk:wbpubs:4367 is not listed on IDEAS
    11. Kornai, J., 1993. "Transformational Recession; A General Phenomenon Examined Through the Example of Hangary's Development," Harvard Institute of Economic Research Working Papers 1648, Harvard - Institute of Economic Research.
    12. H. Huang & C. Xu, 1998. "Soft Budget Constraint and the Optimal Choices of R&D Projects Financing," Working Papers 377, Queen Mary University of London, School of Economics and Finance.
    13. Edmund S. Phelps, 2008. "Understanding the Great Changes in the World: Gaining Ground and Losing Ground since World War II," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Institutional Change and Economic Behaviour, chapter 4, pages 77-98, Palgrave Macmillan.
    14. Walter Frisch, 2005. "Co-Evolution of Information Revolution and Spread of Democracy," Development and Comp Systems 0510001, University Library of Munich, Germany.
    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. Maja Bašić, 2020. "Innovation-Internationalisation Loci In Market Transition Of Information And Telecomunications Firms," Poslovna izvrsnost-Business Excellence, University of Zagreb Faculty of Economics & Business, vol. 14(1), pages 27-48.
    2. Iciar Dominguez Lacasa & Alexander Giebler & Slavo Radošević, 2017. "Technological capabilities in Central and Eastern Europe: an analysis based on priority patents," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(1), pages 83-102, April.
    3. Lukasz Arendt & Wojciech Grabowski, 2017. "Innovations, ICT and ICT-driven labour productivity in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(4), pages 723-758, October.
    4. Oliver Kovacs, 2025. "The interdisciplinarity of degrowth: cross-fertilising disciplines for well-being," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(2), pages 1-38, December.
    5. Alexander Brem & Pierre Wolfram, 2017. "Organisation of new product development in Asia and Europe: results from Western multinationals R&D sites in Germany, India, and China," Review of Managerial Science, Springer, vol. 11(1), pages 159-190, January.
    6. Jadranka Švarc & Marina Dabić, 2019. "The Croatian path from socialism to European membership through the lens of technology transfer policies," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1476-1504, October.
    7. Matoshi, Ruzhdi & Mulaj, Isa, 2020. "Resurgence of transition economics: Brexit as an expected example, experience and lesson," MPRA Paper 107852, University Library of Munich, Germany.

    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. Kornai, János, 2022. "Innováció és dinamizmus. Kölcsönhatás a rendszerek és a technikai haladás között [Innovation and dynamism. The reciprocal effect between systems and technical advance]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 133-173.
    2. János Kornai, 2010. "Innovation and dynamism," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(4), pages 629-670, October.
    3. Di Guo & Haizhou Huang & Kun Jiang & Chenggang Xu, 2021. "Disruptive innovation and R&D ownership structures," Public Choice, Springer, vol. 187(1), pages 143-163, April.
    4. Xu, Cheng-Gang, 2017. "Capitalism and Socialism: Review of Kornai’s Dynamism, Rivalry, and the Surplus Economy," CEPR Discussion Papers 11866, Centre for Economic Policy Research.
    5. Yuping Cao & Xiaojin Sun, 2025. "Soft budget constraints and technological innovations: evidence from China," Public Choice, Springer, vol. 202(1), pages 109-139, January.
    6. Mehrdad Vahabi, 2025. "The Soft Budget Constraint: A Theoretical Clarification," Palgrave Studies in the History of Economic Thought, in: The Legacy of Janos Kornai, chapter 0, pages 229-273, Palgrave Macmillan.
    7. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2003. "A study of the R&D efficiency and productivity of Chinese firms," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 444-464, September.
    8. Mathilde Maurel & Thomas Pernet, 2021. "New evidence on the soft budget constraint: Chinese environmental policy effectiveness in SOE-dominated cities," Public Choice, Springer, vol. 187(1), pages 111-142, April.
    9. Mathilde Maurel & Thomas Pernet-Coudrier, 2020. "New Evidence on the Soft Budget Constraint: Chinese Environmental Policy Effectiveness in Private versus SOEs," Post-Print halshs-02469382, HAL.
    10. Jie Wu & Hongxin Zhao, 2015. "The Dual Effects of State Ownership on Export Activities of Emerging Market Firms: An Inducement–Constraint Perspective," Management International Review, Springer, vol. 55(3), pages 421-451, June.
    11. Lo, Dic & Gao, Ling & Lin, Yuchen, 2022. "State ownership and innovations: Lessons from the mixed-ownership reforms of China's listed companies," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 302-314.
    12. Li, Yuan & Yi, Yuyao & Li, Xiaofan & Tao, Yunqing, 2024. "Do error-tolerance and correction mechanisms enhance the performance of state-owned enterprises in China?," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    13. Xinxin Zhao & Zongjun Wang & Min Deng, 2019. "Interest Rate Marketization, Financing Constraints and R&D Investments: Evidence from China," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    14. Peilei Fan, 2011. "Innovation capacity and economic development: China and India," Economic Change and Restructuring, Springer, vol. 44(1), pages 49-73, April.
    15. Tong, Jian & Xu, Chenggang, 2003. "Financial institutions and the wealth of nations: tales of development," Discussion Paper Series In Economics And Econometrics 0404, Economics Division, School of Social Sciences, University of Southampton.
    16. Mehrdad Vahabi, 2025. "Introduction: A Special Issue in Honouring Janos Kornai," Palgrave Studies in the History of Economic Thought, in: The Legacy of Janos Kornai, chapter 0, pages 31-48, Palgrave Macmillan.
    17. Dong, Gang Nathan & Gu, Ming & He, Hua, 2020. "Invisible hand and helping hand: Private placement of public equity in China," Journal of Corporate Finance, Elsevier, vol. 61(C).
    18. Ciprian Stan & Mike Peng & Garry Bruton, 2014. "Slack and the performance of state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 473-495, June.
    19. Alexei Deviatov & Barry W. Ickes, 2005. "Reputation and the Soft-Budget Constraint," Working Papers w0078, Center for Economic and Financial Research (CEFIR).
    20. Xu, Cheng-Gang & Guo, Di & Huang, Haizhou & Jiang, Kun, 2020. "Disruptive Innovation and R&D Ownership Structures of the Firm," CEPR Discussion Papers 14861, Centre for Economic Policy Research.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:unu:wpaper:wp-2010-033. 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: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.html .

    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.