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Innovation

  • Jati Sengupta
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

Human Capital Total Factor Productivity Physical Capital Production Frontier Creative Destruction 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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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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