International Business and the Eclectic Paradigm by John Cantwell

Author:John Cantwell
Language: eng
Format: mobi
Tags: Economics, Finance, Business & Industry
Publisher: Taylor & Francis
Published: 2007-03-19T16:00:00+00:00

21 Two major points need to be made about the monopoly position created in the market by the entrepreneur or large firm in the pursuit of opportunities for profit accumulation in original Schumpeterian theory: first, the monopoly position is merely an incidental by-product of the process of continuous innovation and is not the major source of profits for innovation; and second, the monopoly position created is quasi-monopolistic, i.e. the monopoly position is neither permanent nor absolute, owing to technological competition. Competition is not to be understood in the technical sense of a perfectly competitive market structure, but in the sense of rivalry that drives the market process down the road to coordination of individual plans of market participants. The competitive market process is required in the mobilisation of existing knowledge and in the generation of awareness of new profitable opportunities to non-omniscient market participants. Original Schumpeterian theory is thus fundamentally opposed to the 'Schumpeterian hypothesis' in which the line of reasoning is reversed in a way that market power and the attainment of monopoly profits becomes the cause of innovation (see Cantwell 2002). Thus, in seeking to provide a theoretical framework to competitive asset advantages in the eclectic paradigm by the introduction of Schumpeterian theory, such framework is to be understood as the original theory as Schumpeter had developed it, and not the 'Schumpeterian hypothesis' which resulted from an attempt to recast the original insights of Schumpeter within the framework of orthodox theoretical neoclassical economics.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.