Book contents
- Frontmatter
- Contents
- List of exhibits
- Preface
- List of abbreviations and acronyms
- Introduction
- 1 Summary of the argument
- 2 The new ICT ecosystem: architectural structure
- 3 The new ICT ecosystem as an innovation system
- 4 The new ICT ecosystem: a quantitative analysis
- 5 Telecoms regulation
- 6 Policy-making for the new ICT ecosystem
- 7 The way forward: the message to policy-makers and regulators
- Appendixes
- 1 The evolution of the new ICT ecosystem, 1945–2007: how innovation drives the system
- 2 European regulation of electronic communications, 1987–2003
- 3 Some problems with the dominant regulatory paradigm in telecoms (DRPT)
- 4 A short introduction to Schumpeterian evolutionary economics
- 5 Other layer models: OSI and TCP/IP
- 6 Content, applications and services: definitions
- 7 Why do US Internet companies dominate in layer 3?
- 8 How did East Asia (Japan, Korea, Taiwan and China) become so strong in layer 1?
- 9 China's telecoms service providers in layer 2
- 10 Companies in our database, by layer
- Bibliography
- Index
4 - A short introduction to Schumpeterian evolutionary economics
Published online by Cambridge University Press: 04 May 2010
- Frontmatter
- Contents
- List of exhibits
- Preface
- List of abbreviations and acronyms
- Introduction
- 1 Summary of the argument
- 2 The new ICT ecosystem: architectural structure
- 3 The new ICT ecosystem as an innovation system
- 4 The new ICT ecosystem: a quantitative analysis
- 5 Telecoms regulation
- 6 Policy-making for the new ICT ecosystem
- 7 The way forward: the message to policy-makers and regulators
- Appendixes
- 1 The evolution of the new ICT ecosystem, 1945–2007: how innovation drives the system
- 2 European regulation of electronic communications, 1987–2003
- 3 Some problems with the dominant regulatory paradigm in telecoms (DRPT)
- 4 A short introduction to Schumpeterian evolutionary economics
- 5 Other layer models: OSI and TCP/IP
- 6 Content, applications and services: definitions
- 7 Why do US Internet companies dominate in layer 3?
- 8 How did East Asia (Japan, Korea, Taiwan and China) become so strong in layer 1?
- 9 China's telecoms service providers in layer 2
- 10 Companies in our database, by layer
- Bibliography
- Index
Summary
In this appendix a brief introduction is given to the Schumpeterian evolutionary economics which provides a conceptual underpinning for much of the thinking in this book.
Joseph Schumpeter's main concern was with what he called ‘economic development’, a phenomenon that in his view was closely associated with innovation. However, in his book, The Theory of Economic Development (Schumpeter 1934), he began by imagining an economic world devoid of innovation. It is in this world, he showed, that the static theory of neoclassical economics found its natural home as equilibrium prices and quantities were established.
The choice of this starting point, however, is to emphasise that the real world of restless capitalism is fundamentally different from the stationary world imagined in our chapter 1. The essence of this real world is that it involves endogenously generated development. Schumpeter defined this development as ‘the carrying out of new combinations’ – in short, the implementation of internally created innovations. These new combinations included new products, new technologies and processes, the opening of new markets, the creation of new sources of supply of raw materials or manufactured goods and the implementation of new forms of organisation.
It is the carrying out of new combinations that, Schumpeter argued, is the function of entrepreneurs, both the individual entrepreneur (as Schumpeter argued in The Theory of Economic Development) and the large corporate ‘entrepreneur’ that organised the entrepreneurial function in routinised company R&D laboratories (as he suggested in Capitalism, Socialism and Democracy, 1943).
- Type
- Chapter
- Information
- The New ICT EcosystemImplications for Policy and Regulation, pp. 164 - 167Publisher: Cambridge University PressPrint publication year: 2010