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Entrepreneurial state: The schumpeterian theory of industrial policy and the East Asian “Miracle”

In: Schumpeterian Perspectives on Innovation, Competition and Growth

Author

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  • Alexander Ebner

    (Goethe University Frankfurt)

Abstract

Current debates on the policy orientation of Schumpeterian theorizing tend to highlight industrial policy as a controversial matter that is associated with government intervention in the process of technological innovation and industrial evolution. This paper presents a distinctly Schumpeterian approach to industrial policy, which is meant to overcome some basic misunderstandings in these controversies. It highlights Schumpeter’s original position on the institutional specificity of entrepreneurship, involving the temporary exercise of industrial leadership by the state, thus underlining the contextual character of industrial policy. The corresponding Schumpeterian notion of the entrepreneurial state points to institutional modes of coordination between public and private sector that shape industrial capabilities for generating and absorbing new technologies in the process of economic development. This involves a reconsideration of crucial aspects such as political guidance and institutional learning. In examining the analytical impact of this reconstructed Schumpeterian approach, the paper addresses the ongoing debate on the institutional substance of industrial policy in the East Asian economies.

Suggested Citation

  • Alexander Ebner, 2009. "Entrepreneurial state: The schumpeterian theory of industrial policy and the East Asian “Miracle”," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 369-390, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-93777-7_20
    DOI: 10.1007/978-3-540-93777-7_20
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    Cited by:

    1. David B. Audretsch & Antje Fiedler, 2023. "Does the entrepreneurial state crowd out entrepreneurship?," Small Business Economics, Springer, vol. 60(2), pages 573-589, February.

    More about this item

    Keywords

    Schumpeter; Economic development; Entrepreneurship; Industrial policy; Entrepreneurial state; East Asia;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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