Schumpeter is regarded as one of the greatest economists of the first half of the 20th century. The concepts of innovation and entrepreneurship are probably Schumpeter’s most distinctive contributions to Economics. The basic concepts of his earlier view, as emphasized in The Theory of Economic Development, originally published in 1912, still one of the most famous and influential books in the entire field of Economics, is here reported. If you have a friend into the startup world, make him a favor, share with him this material!!! .

1. Schumpeter for dummies
his view on innovation and
entrepreneurship
Floriano Bonfigli
@io_floriano

2. • What matters in terms of economic growth, investment
and employment, is not the discovery of basic
innovation, but rather the diffusion of basic innovation.
• It is not the power of ideas but the power that gets
things done.
• The pure new idea is not adequate by itself to lead to
implementation. This must be taken up by a strong
character, the entrepreneur, and implemented through
their influence.
• In conclusion, innovations are essential to explaining
economic growth, and the entrepreneur is the central
innovator.
Economic growth

3. • The only things a person needs to be an entrepreneur are
“the will and the action”.
• The entrepreneur’s main function is to allocate existing
resources to new uses and new combinations.
• Entrepreneurs’ main distinctive features are linked with their
courage for carrying out a new plan even if they do not have
complete knowledge.
• The entrepreneur characteristic task consists precisely in
breaking up old, and creating new, tradition.
• The entrepreneur can be a very discrete person who need not
to convince others from the market about the desirability of
their vision, capacities or abilities because he or she is able to
“lead the means of production into new channels” and
• Often “the only man he has to convince or to impress is the
banker who is to finance him”.
The entrepreneur

4. • Often “the only man he has to convince or to impress is
the banker who is to finance him”.
• In fact, entrepreneurs are not necessarily the
possessors of the capital used for carrying out the new
combinations, because in many cases they use stocks of
capital supplied through the mechanisms of credit by
capitalists or bankers.
• It is not necessarily an entrepreneur who receives
profit, but surely it is created entirely thanks to him.
Profit goes to the capitalist, the owner of the company.
• The entrepreneurial profit constitutes an independent
value phenomenon fundamentally connected with the
role of leadership they have in the economic system.
The entrepreneur, the capitalist and the
banker

5. • http://compaso.eu/wp-
content/uploads/2013/01/Compaso2012-32-
Croitoru.pdf
• http://www.academia.edu/5396861/SCHUMPETER
_S_VIEW_ON_INNOVATION_AND_ENTREPRENEURS
HIP
References