Schumpeter and Schumpeterians on economic policy issues: re-reading Schumpeter through the lens of institutional and behavioral economics. An introduction to the special issue.
Résumé
We develop a critical interpretation of Schumpeter’s thinking that allows
two alternative ‘operationalizations’ of his theoretical approach to economic development
and institutions. We show that they are compatible with the two dominant
neo-Schumpeterian economic dynamics approaches - one focused on the national
economic and institutional conditions required for a commitment to an innovation
based strategy for competing at the world technology frontier, and one that combines
Schumpeter’s insights on technological change with Keynesian policies
supporting demand for consumer goods and investment in the context of radical
uncertainty and heterogeneous behavior. The implications for policy of these two
perspectives are discussed in relation to Schumpeter’s ambiguous stance on economic
policy issues. Finally, based on an articulation of institutions and individual
behavior in light of recent developments in behavioral economics, we provide some
implications for new perspectives on economic policy.