The Neo-Schumpeterian Model of Economic Development in the Basque Country: The role of Social Economy

Abstract

In this paper we analyse the neo-schumpterian model of economic development applied to the economy of the Basque Country during the last few years and the three pillars that account for the development of a region following this model are rooted in the Basque economy in which there are company organizations that promote competition, financial institutions prepared to run risks and public authorities geared towards modernising and boosting the economy by means of tax incentives and other types of aid. However, we firmly believe that, apart from the three pillars established by the neo-schumpterians, another two should be added to this model: innovation and worker participation both in capital and profits and in management. Worker participation in enterprise is another factor which accounts for economic development in the Basque Country. In short, the cooperatives are a model of the integration of innovative and participative culture and commercial companies could apply certain elements of these cooperatives with a view to becoming more dynamic and more social.Cooperatives, innovation, management, neo-schumperian model, participation.