Innovation

Chapter

Abstract

Innovation is a broader concept than technology. It includes both technology and knowledge capital. Technology is based mainly on the accumulation of physical capital. Knowledge capital and know-how are based on the accumulation of human capital. Human capital may take several forms, e.g., R&D investment, learning by doing, organizational learning, and creative forms of research applications. Schumpeter’s concept of innovation is very broad: it plays a central role in speeding up capitalist development. It fundamentally alters the paradigm of Walrasian competitive equilibrium: it shifts the production frontier, develops new products and processes, and changes the market structure.

Keywords

Marketing Arena Malaysia Indonesia Undercut 

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of CaliforniaSanta BarbaraUSA

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