Monday, November 26, 2007

Economic Theory for an Innovative World

We must replace neoclassical theory, including Schumpeter's model, with models applicable to the modern world where many entrepreneurs conceive and develop successful new ideas born from their private knowledge, so economists can capture the range of jobs created by innovation, investment booms and slumps, the opening and closing of lags behind the lead countries, the workplace as the main locus of problem solving, the presence of as much disorder as order, and the joy from the creativity realized.


An upcoming Edmund Phelps lecture at Columbia (on 27th of November).

I hope they put the video online- I don't know why they prefer to put Iranian President's speech online rather than lectures like this.

1 comment:

Anonymous said...

Innovation requires freedom to choose and the ability to think of "out of the box." This article isn't economics as it is buraeucratic planning. Eastern Europe did they same thing for most of the later half of the 20th century and it stifled innovation in all field of endeavors. it crippled their economies and civilization.

Innovation cannot be regulated or scheduled. There must be a free flow of ideas and struggles. Similiar to stem-cell research, if that area of development waited for all the ethical guidelines, rules, laws and regulation to be enacted it would never advance into life saving technologies and human knowledge. Most of the time the knowledge and technologies get ahead of regulation and law making. Civilization had cars and an automobile indusry before it had manufacturing standards, traffic laws, insurance, etc. Anything that counters this will only stifle and suffocate technology innovation and human progress.

Danny L. McDaniel
Lafayette, Indiana