October 2009
Intermediate to advanced
448 pages
8h 21m
English
Content preview from The Daily Drucker
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Today’s profitable business will become tomorrow’s white elephant.
Joseph Schumpeter insisted that innovation is the very essence of economics and most certainly of a modern economy. Schumpeter’s Theory of Economic Development makes profit fulfill an economic function. In the economy of change and innovation, a profit, in contrast to Karl Marx’s theory, is not a “surplus value” stolen from the workers. On the contrary, it is the only source of jobs for workers and of labor income. The theory of economic development shows that no one except the innovator makes a genuine “profit”; and the innovator’s profit is always quite short-lived.
But innovation, in Schumpeter’s famous phrase, is also “creative destruction.” ...
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