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Schumpeterian Rent
Schumpeterian rents are earned by innovators and occur during the period of time between the introduction of an innovation and its successful diffusion. It is expected that successful innovations, in time, will be imitated, but until that occurs, the innovator will earn Schumpeterian rents. They were named after economist Joseph Schumpeter, who saw profits made by businesses as resulting from the development of new processes which disturb economic equilibrium, temporarily raising revenues above their resource costs. This type of profit is also called ''entrepreneurial rent''. Schumpeterian rent is seen as a form of economic rent, although Schumpeterian rent may be seen as an incentive towards greater economic efficiency. Karl Marx In Marxian economics, the equivalent to Schumpeterian rent is the ''extra surplus value'' that is extracted from the laborer during the rise of ''local productivity'', meaning the development of the productive forces through innovation owned by the res ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or service (economics), services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity, realizing or redistributing value (economics), value". Others have different definitions; a common element in the definitions is a focus on newness, improvement, and spread of ideas or technologies. Innovation often takes place through the development of more-effective product (business), products, processes, Service (economics), services, technologies, art works or business models that innovators make available to Market (economics), markets, governments and society. Innovation is related to, but not the same as, ''invention'': innovation is more apt to involve the practical implementation of an invention (i.e. new / improved ability) to make a meaningful impact in a market or society, and not all innovations requir ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Diffusion (business)
In business, diffusion is the process by which a new idea or new product (business), product is accepted by the Market (economics), market. The rate of diffusion is the speed with which the new idea spreads from one consumer to the next. Adoption is the reciprocal process as viewed from a consumer perspective rather than distributor; it is similar to diffusion except that it deals with the psychological processes an individual goes through, rather than an aggregate market process. Theories There are several theories that purport to explain the mechanics of diffusion: *Two-step flow of communication, The two-step hypothesis – information and acceptance flows, via the media, first to Opinion leadership, opinion leaders, then to the general population * Trickle-down fashion – products tend to be expensive at first, and therefore only accessible to the wealthy social strata – in time they become less expensive and are diffused to lower and lower strata. *The Everett Rogers Diff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Joseph Schumpeter
Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian political economist. He served briefly as Finance Minister of Austria in 1919. In 1932, he emigrated to the United States to become a professor at Harvard University, where he remained until the end of his career, and in 1939 obtained American citizenship. Schumpeter was one of the most influential economists of the early 20th century, and popularized creative destruction, a term coined by Werner Sombart. His magnum opus is considered '' Capitalism, Socialism and Democracy.'' Early life and education Schumpeter was born in 1883 in Triesch, Habsburg Moravia (now Třešť in the Czech Republic, then part of Austria-Hungary), to German-speaking Catholic parents. Though both of his grandmothers were Czech, Schumpeter did not acknowledge his Czech ancestry. His father, who owned a factory, died when Joseph was only four years old. In 1893, Joseph and his mother moved to Vienna. Schumpeter was ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Rent
In economics, economic rent is any payment to the owner of a factor of production in excess of the costs needed to bring that factor into production. In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities (e.g., patents). In the moral economy of neoclassical economics, assuming the market is natural, and does not come about by state and social contrivance, economic rent includes income gained by labor or state beneficiaries or other "contrived" exclusivity, such as labor guilds and unofficial corruption. Overview In the moral economy of the economics tradition broadly, economic rent is distinct from producer surplus, or normal profit, both of which are theorized to involve productive human action. Economic rent is also independent of opportunity cost, unlike economic profit, where opportunity c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marxian Economics
Marxian economics, or the Marxian school of economics, is a heterodox school of political economic thought. Its foundations can be traced back to Karl Marx's critique of political economy. However, unlike critics of political economy, Marxian economists tend to accept the concept of the economy prima facie. Marxian economics comprises several different theories and includes multiple schools of thought, which are sometimes opposed to each other; in many cases Marxian analysis is used to complement, or to supplement, other economic approaches. An example can be found in the works of Soviet economists like Lev Gatovsky, who sought to apply Marxist economic theory to the objectives, needs, and political conditions of the socialist construction in the Soviet Union, contributing to the development of Soviet political economy. Marxian economics concerns itself variously with the analysis of crisis in capitalism, the role and distribution of the surplus product and surplus value in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Surplus Value
In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to manufacture it: i.e. the amount raised through sale of the product minus the cost of the materials, plant and labour power. The concept originated in Ricardian socialism, with the term "surplus value" itself being coined by William Thompson (philosopher), William Thompson in 1824; however, it was not consistently distinguished from the related concepts of surplus labor and surplus product. The concept was subsequently developed and popularized by Karl Marx. Marx's formulation is the standard sense and the primary basis for further developments, though how much of Marx's concept is original and distinct from the Ricardian concept is disputed (see ). Marx's term is the German word "''Mehrwert''", which simply means value added (sales revenue minus the cost of materials used up), and is cognate to English "more worth". It is a major concept in Karl M ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Productive Forces
Productive forces, productive powers, or forces of production ( German: ''Produktivkräfte'') is a central idea in Marxism and historical materialism. In Karl Marx and Friedrich Engels' own critique of political economy, it refers to the combination of the means of labor (tools, machinery, land, infrastructure, and so on) with human labour power. Marx and Engels probably derived the concept from Adam Smith's reference to the "productive powers of labour" (see e.g. chapter 8 of ''The Wealth of Nations'' (1776)), although the German political economist Friedrich List also mentions the concept of "productive powers" in ''The National System of Political Economy'' (1841). All those forces which are applied by people in the production process (body and brain, tools and techniques, materials, resources, quality of workers' cooperation, and equipment) are encompassed by this concept, including those management and engineering functions technically indispensable for production (as c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Profit
In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment. Historical cost ''vs.'' market value The rate of profit depends on the definition of ''capital invested''. Two measurements of the value of capital exist: capital at historical cost and capital at market value. Historical cost is the original cost of an asset at the time of purchase or payment. Market value is the re-sale value, replacement value, or value in present or alternative use. To compute the rate of profit, replacement cost of capital assets must be used to define the capital cost. Assets such as machinery cannot be replaced at their historical cost, but must be purchased at the current market value. When inflation occurs, historical cost would not take account of rising prices of equipment. The rate of profit would be overestimated, using lower historic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Magnus Henrekson
Magnus Henrekson, born 1958, is a professor of economics and between 2005 and 2020 he was president of the Research Institute of Industrial Economics (IFN) in Stockholm, Sweden. Between 2001 and 2009 he was Jacob Wallenberg Professor of Economics at the Stockholm School of Economics. Henrekson was as president by Fredrik Sjöholm, formerly professor of International Economics at Lund University. Prof. Henrekson will continue to be active as a researcher at IFN. Henrekson's research is empirically oriented. He got his Ph.D. from the University of Gothenburg in 1990. His dissertation dealt with empirical determinants of public sector growth. Since the turn of the new millennium, his primary research focus is entrepreneurship economics and the institutional determinants of the business climate. In collaboration with Steven J. Davis at the University of Chicago he has developed methods to test whether pertinent rules of the game have differential effects on different firms depending ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Research Institute Of Industrial Economics (IFN)
The Research Institute of Industrial Economics () is a private independent research foundation based in Stockholm, Sweden. Professor Magnus Henrekson Magnus Henrekson, born 1958, is a professor of economics and between 2005 and 2020 he was president of the Research Institute of Industrial Economics (IFN) in Stockholm, Sweden. Between 2001 and 2009 he was Jacob Wallenberg Professor of Economics a ... is the managing director of the Institute and Professor Lars Persson is the deputy director. In addition, approximately 30 researchers are employed at IFN and about as many are affiliated to the institute. The institute was founded in 1939. Ivar Andersson became the first managing director of the institute and Sigrid Edström its first chairman. References External links Official webpage Economic research institutes Research institutes in Sweden {{econ-org-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stockholm
Stockholm (; ) is the Capital city, capital and List of urban areas in Sweden by population, most populous city of Sweden, as well as the List of urban areas in the Nordic countries, largest urban area in the Nordic countries. Approximately 1 million people live in the Stockholm Municipality, municipality, with 1.6 million in the Stockholm urban area, urban area, and 2.5 million in the Metropolitan Stockholm, metropolitan area. The city stretches across fourteen islands where Mälaren, Lake Mälaren flows into the Baltic Sea. Outside the city to the east, and along the coast, is the island chain of the Stockholm archipelago. The area has been settled since the Stone Age, in the 6th millennium BC, and was founded as a city in 1252 by Swedish statesman Birger Jarl. The city serves as the county seat of Stockholm County. Stockholm is the cultural, media, political, and economic centre of Sweden. The Stockholm region alone accounts for over a third of the country's Gros ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Entrepreneurship
Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones. An entrepreneur () is an businessperson, individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as "entrepreneurship". The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, often similar to a small business, or (per ''Business Dictionary'') as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a Profit (accounting), profit". The people who create these businesses are often referred to as "e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
