Schumpeter: Theorist of the Avant-Garde

This paper argues that Schumpeter’s 1911 edition of ‘Theory of Economic Development’ can be fruitfully read as a theory of the avant-garde, in line with such theories developed by artistic avant-garde around the same time, in particular by the Italian Futurists. In particular it will show that both Schumpeter and other avant-garde theorists sought to break with past (1), identify an avant-garde who could force that break (2), find new ways to represent the dynamic world (3), embrace the new and dynamic (4) and promote a perpetual dynamic process, instead of a specific end-state or utopia (5). This new reading helps us to understand the cultural meaning of this seminal text in economics. Secondly it greatly facilitates our understanding of the differences with the later interwar German edition and English edition, which were more cautious in their embrace of the new, less focused on the individual qualities of the entrepreneur and placed more emphasis on historical continuity. Thirdly this reading suggests a different reason for the bifurcation between Schumpeter and the rest of the Austrian school of economics. Traditionally this split is explained by Schumpeter’s affinities with the Lausanne School, this paper instead suggests that the crucial break between Schumpeter on the one hand and Böhm-Bawerk, Wieser and later members of the Austrian School on the other hand is their theory of and attitude toward social change

Assessment of Connections Between Knowledge- Based Economy Characteristics and Selected Macroeconomic Categories in the European Union's Countries by Means of Panel Models

The aim of the article is to analyze the impact of knowledge-based economy variables on the selected macroeconomic categories - the share of total investments in GDP and the employment rate- in European Union's countries in the years 2000-2007, conducted with application of panel models.Celem artykułu jest analiza wpływu zmiennych opisujących gospodarkę opartą na wiedzy na podstawowe kategorie makroekonomiczne - udział całkowitych inwestycji w PKB i stopę zatrudnienia - w krajach Unii Europejskiej (z podziałem na kraje UE-15 i nowe kraje członkowskie UE) w latach 2000-2007, przeprowadzona w oparciu o modele panelowe

The iron law of democratic socialism: British and Austrian influences on the young Karl Polanyi

This article has been made available through the Brunel Open Access Publishing Fund.A central thesis of Karl Polanyi's The great transformation concerns the tensions between capitalism and democracy: the former embodies the principle of inequality, while democracy represents that of equality. This paper explores the intellectual heritage of this thesis, in the ‘functional theory’ of G.D.H. Cole and Otto Bauer and in the writings of Eduard Bernstein. It scrutinizes Polanyi's relationship with Bernstein's ‘evolutionary socialism’ and charts his ‘double movement’ vis-à-vis Marxist philosophy: in the 1910s he reacted sharply against Marxism's deterministic excesses, but he then, in the 1920s, engaged in sympathetic dialogue with Austro-Marxist thinkers. The latter, like Bernstein, disavowed economic determinism and insisted upon the importance and autonomy of ethics. Yet they simultaneously predicted a law-like expansion of democracy from the political to the economic arena. Analysis of this contradiction provides the basis for a concluding discussion that reconsiders the deterministic threads in Polanyi's oeuvre. Whereas for some Polanyi scholars these attest to his residual attraction to Marxism, I argue that matters are more complex. While Polanyi did repudiate the more rigidly deterministic of currents in Marxist philosophy, those to which he was attracted, notably Bernstein's ‘revision’ and Austro-Marxism, incorporated a deterministic fatalism of their own, in respect of democratization. Herein lies a more convincing explanation of Polanyi's incomplete escape from a deterministic philosophy of history, as exemplified in his masterwork, The great transformation

The theoretical bases of economic policy: the Schumpeterian perspective

The central role of economic policy in an evolutionary environment is stressed. Based on a Schumpeterian view the theoretical foundations of such a policy are discussed. This investigation leads to the result that not general rules satisfying and maintaining equilibrium are required but a constant watchfulness, reaction, and, if possible, anticipation of what happens in the economy.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/46109/1/191_2005_Article_BF01237909.pd

Citizen Entrepreneurship: A Conceptual Picture of the Inclusion, Integration and Engagement of Citizens in the Entrepreneurial Process

This conceptual and exploratory article aims to present a rationale for the engagement of citizens with the process and practice of, and research on new civic forms of entrepreneurship. We argue that this form of citizen engagement could enable a better alignment of entrepreneurial initiatives with economic, social and community priorities, and to address issues of global significance of local interest in uncertain environments. To this end, we posit that engaging citizens in the entrepreneurial process could facilitate agency at the collective level of people with their rights, duties and responsibilities, to identify, participate in and govern with existing institutions, in meaningful economic and social activity in defined spatial environments. Our normative understanding of entrepreneurial process involves the creation of business, social and public enterprises, the formation of which is led by entrepreneurs. Entrepreneurs are of course citizens of specific nation states, but their endeavours do not necessarily warrant the participation of the wider community of citizens in the entrepreneurial process beyond their receiving function as users of goods and services. We consider whether pro-active engagement in a variety of ways, as nurtured in the practice of Citizen Science or Citizen Economics projects, could strengthen the profile and substance of entrepreneurship to resolve critical economic, social and environmental concerns of our times. We use the concept of the ‘commons’ and collective efficacy to argue for an understanding of entrepreneurship and innovation as a social good. We argue that Citizen Entrepreneurship (CE) is able to create new forms of collective organisation and governance, and derive economic and social value by addressing local issues arising from wide-spread phenomena such as climate change, ecological and environmental challenges, inequality, social polarisation, populism, migration and the gradual erosion of democratic institutions. To do so, citizens need to develop capabilities for engagement in the entrepreneurship process, especially when traditional public and market institutions fail to satisfy their existential needs. Indeed, active engagement could lead to the achievement of capabilities for well-being and fulfilling lives which go beyond the acquisition of skills and competencies necessary to pursue a vocation or a career. We refer to and interpret three examples of collective entrepreneurial activity in different urban environments in European countries as models of CE highlighting what we see as a growing trend in the entrepreneurial substance of the ‘urban commons’. We work towards the creation of a conceptual model with which to develop an understanding of a unique formulation of entrepreneurship

Resilience and economic empowerment: A qualitative investigation of entrepreneurial Indonesian Women

The development of female entrepreneurs in Indonesia is an integral part of Muslim women\u27s economic contributions and empowerment. However, there is a lack of reliable research about female entrepreneurship and how gender may affect the experiences of business ownership in Indonesia. Therefore, the aim of this study is to explore the challenges encountered by these women entrepreneurs on a daily basis. Qualitative in-depth interviews were conducted with 30 female Indonesian entrepreneurs. Participants were recruited using theoretical and maximum variation sampling techniques. Content analysis was then used to analyze the data. Results revealed high levels of variations, both within and between women, suggesting that the quality of business entrepreneurship and success depended largely on the personal characteristics of these women, rather than on any system of formal education or training. This study also found that many women displayed resilient coping strategies when dealing with business failures. As a consequence, they were able to thrive despite restrictive social, cultural and political constraints. The paper highlights the importance of the experiences of female entrepreneurs in a developing country and the need to integrate the development of female entrepreneurship as a part of women empowerment effort

Social democracy, embeddedness and decommodification: On the conceptual innovations and intellectual affiliations of Karl Polanyi

Of the several debates that revolve around the work of the economic historian and political economist Karl Polanyi, one that continues to exercise minds concerns his analysis of, and political attitudes toward, post-war capitalism and the welfare state. Simplified a little, it is a debate with two sides. To borrow Iván Szelényi's terms, one side constructs a ‘hard’ Karl Polanyi, the other a ‘soft’ one. The former advocated a socialist mixed economy dominated by redistributive mechanisms. He was a radical socialist for whom the market should never be the dominant mechanism of economic coordination. His ‘soft’ alter ego insisted that the market system remain essentially intact but be complemented by redistributive mechanisms. The ‘double movement’ – the central thesis of his ‘Great Transformation’ – acts, in this reading, as a self-correcting mechanism that moderates the excesses of market fundamentalism; its author was positioned within the social-democratic mainstream for which the only realistic desirable goal is a regulated form of capitalism. In terms of textual evidence there is much to be said for both interpretations. In this article I suggest a different approach, one that focuses upon the meaning of Polanyi's concepts in relation to their socio-political and intellectual environment

On the compatibility of benevolence and self-interest:philanthropy and entrepreneurial orientation

This article explores the philanthropy of owner–managers of small- and medium-sized enterprises (SMEs) investigating whether and why more entrepreneurially oriented SMEs are also more likely to engage in philanthropic activities. We find support for a positive link between entrepreneurial orientation (EO) and philanthropy in a representative sample of 270 Lithuanian SMEs controlling for alternative explanations. We highlight that philanthropy is relatively common among SME owner–managers and thus complement existing research which views philanthropy as sequentially following wealth generation. In line with our theorizing, further qualitative findings point to drivers of philanthropy beyond those considered in the dominant strategic-instrumental perspective. Building on social-psychological theories of motivation, we argue and confirm that philanthropy can also be an expression of owner–managers’ altruistic values; these values can be compatible and even mutually reinforcing with entrepreneurship. Our study is set in a transition economy, Lithuania, facilitating the analysis of heterogeneity in attitudes toward philanthropy