Capitalism and Democracy in the 21st Century

Joseph Schumpeter oscillated in his view about the type of economic system that was most conducive to growth. In his 1911 treatise, Schumpeter argued that a more decentralized and turbulent industry structure where the pro cess of creative destruction was triggered by vigorous entrepreneurial ac tivity was the engine of economic growth. But by 1942 Schumpeter had modified his theory, arguing instead that a more centralized and stable industry structure was more conducive to growth. According to Schum peter (1942, p. 132), under the managed economy there was little room for entrepreneurship because, "Innovation itself is being reduced to routine. Technological progress is increasingly becoming the business of teams of trained specialists who turn out what is required to make it work in pre dictable ways" (p. 132). Schumpeter (1942) reversed his earlier view by arguing that the integration of knowledge creation and appropriation be stowed an inherent innovative advantage upon giant corporations, "Since capitalist enterprise, by its very achievements, tends to automize progress, we conclude that it tends to make itself superfluous - to break to pieces under the pressure of its own success.

The collected papers in this volume are all concerned either in a direct sense or in a more wider perspective with the work of Joseph A. Schumpeter. Looking at Schumpeter's work, his lasting influence on important areas of research can be identified. One of these areas is obviously Schumpeter's idea about the future capitalism, a second one the issue of innovation and its consequences for economic development. A third area is concerned with the political process and the role of political leadership. The collection of this volume is developed along these main lines, complemented by papers discussing the place of Schumpeter's work within the history of economic analysis.

Editorial.- Democracy and capitalism: Are they compatible in the long-run?.- Capitalism and democracy in the 21st century: from the managed to the entrepreneurial economy.- Capitalism and democracy in the 21st century: a Kaleckian interpretation of a Schumpeterian problem.- Capitalism and democracy at a crossroads: the civilizational dimension.- Presidential address.- Capitalism, democracy and rational individual behaviour.- Capitalism and globalization.- A spectre in haunting the world - the spectre of global capitalism.- Reflections on the perspectives of the global economy from the point of view of emerging economies.- Capitalism, profits and innovation in the new techno-economic paradigm.- Debt, growth and inflation in large European economies: a vector auto-regression analysis.- The innovation process.- Uncertainty and the size distribution of rewards from innovation.- The determinants of pharmaceutical research and development expenditures.- Industrial policy, competence blocs and the role of science in economic development.- Multimarket contact and inter-firm cooperation in R&D.- The democratic process.- Political entrepreneurship and bidding for political monopoly.- Schumpeter and the history of ideas.- Market institutions and economic evolution.- Competitive selection, self-organisation and Joseph A. Schumpeter.- Convergences with Schumpeter: An essay Hirschman has yet to write.- Schumpeter and Steindl on the dynamics of competition.- Schumpeter and the 'Schmollerprogramm': integrating theory and history in the analysis of economic development.