Starting out from a classical perspective on income distribution and growth, the paper reconsiders this issue in the framework of a basic (deterministic) Schumpeterian model with ongoing technical change. On a long-run equilibrium path of this economy, the forces of technological innovation and diffusion balance such that always various techniques of different efficiencies coexist. A consequenc...

The service sector is characterised by being over-proportionally based on SMEs where these SMEs rarely possess formal intellectual property (IPR) in the sense of patents, etc. Organisations compete intensively and reap relatively short-term Schumpeterian profits by means of incremental innovation. In this high-churn environment, managing internal knowledge networks for ‘mutual inspiration’ can ...

This paper discusses the position of the European Union in the world economy by focussing on innovation, knowledge creation and technology policy. First, we explore and analyse the concept of knowledge and its application in a modern Schumpeterian framework. Second, we address some new insights in the diffusion and other properties of knowledge. Third, we focus on knowledge spillovers by invest...

Our IO approach links optimal effective corporation tax rates to the nature of sunk costs within industries. Theory predicts that optimal effective corporation tax rates will be negatively related to industry specific sunk cost, and hence industry concentration. Governments should tax industries with monopolistic power softly. Evidence suggests that this Schumpeterian (1942) principle of corpor...

We examine the conceptualization of entrepreneurs in neo-Schumpeterian growth theory, which has reintroduced into mainstream economics. Specifically, we analyze how neo-Schumpeterians relate to contradiction between entrepreneur-centered view Schumpeter (1934) and entrepreneurless framework (1942), with two frameworks entailing vastly different economic policy implications. The analysis is base...