Feb 17, 2020
Prophet of Innovation: Joseph Schumpeter and Creative Destruction
Posted by Thomas K. McCraw

Pan Am, Gimbel s, Pullman, Douglas Aircraft, Digital Equipment Corporation, British Leyland all once as strong as dinosaurs, all now just as extinct Destruction of businesses, fortunes, products, and careers is the price of progress toward a better material life No one understood this bedrock economic principle better than Joseph A Schumpeter Creative destruction, hPan Am, Gimbel s, Pullman, Douglas Aircraft, Digital Equipment Corporation, British Leyland all once as strong as dinosaurs, all now just as extinct Destruction of businesses, fortunes, products, and careers is the price of progress toward a better material life No one understood this bedrock economic principle better than Joseph A Schumpeter Creative destruction, he said, is the driving force of capitalism.Described by John Kenneth Galbraith as the most sophisticated conservative of the twentieth century, Schumpeter made his mark as the prophet of incessant change His vision was stark Nearly all businesses fail, victims of innovation by their competitors Businesspeople ignore this lesson at their peril to survive, they must be entrepreneurial and think strategically Yet in Schumpeter s view, the general prosperity produced by the capitalist engine far outweighs the wreckage it leaves behind.During a tumultuous life spanning two world wars, the Great Depression, and the early Cold War, Schumpeter reinvented himself many times From boy wonder in turn of the century Vienna to captivating Harvard professor, he was stalked by tragedy and haunted by the specter of his rival, John Maynard Keynes By 1983 the centennial of the birth of both men Forbes christened Schumpeter, not Keynes, the best navigator through the turbulent seas of globalization Time has proved that assessment accurate Prophet of Innovation is also the private story of a man rescued repeatedly by women who loved him and put his well being above their own Without them, he would likely have perished, so fierce were the conflicts between his reason and his emotions Drawing on all of Schumpeter s writings, including many intimate diaries and letters never before used, this biography paints the full portrait of a magnetic figure who aspired to become the world s greatest economist, lover, and horseman and admitted to failure only with the horses.

  • Title: Prophet of Innovation: Joseph Schumpeter and Creative Destruction
  • Author: Thomas K. McCraw
  • ISBN: -
  • Page: 261
  • Format: Hardcover
  • Prophet of Innovation Joseph Schumpeter and Creative Destruction Pan Am Gimbel s Pullman Douglas Aircraft Digital Equipment Corporation British Leyland all once as strong as dinosaurs all now just as extinct Destruction of businesses fortunes products and


    This is a very long summary of Prophet of Innovation Joseph Schumpeter and Creative Destruction by Thomas McCraw, Harvard University Press, 2007 In fact, these are extracts from the book and I mentioned the pages as much as I could If you are courageous enough to read until the end, you might be interested in buying the full book Schumpeter is clearly the Prophet of Innovation and Thomas McCraw s book is a great piece of historical and economic analysis It is about Schumpeter life, which is by i [...]

    Samin Kashmy

    Good book to know about the initial thoughts on capitalism and schumpeter particularly Loved it.


    Joseph Schumpeter 1883 1950 was a central European economist who spent the last eighteen years of his life at Harvard University He was born in the Austro Hungarian empire, in what is now Czechloslovakia to German speaking parents his father s family had lived in the area for centuries , but after his father died when he was four his mother moved to Austria and made sure he received an elite education His degree from the University of Vienna was actually in law, but the topic in that time and pl [...]

    Adriaan Jansen

    In this biography of 20th century economist Joseph Schumpeter, Thomas McCraw strikes a good balance between Schumpeter s lifetimes on the one hand and his thoughts, theories and ideas about economics on the other Schumpeter s academically active life spans the first part of the 20th century As a resident of Vienna, Bonn and Boston, he had first hand experiences of WW 1, the great depression and WW 2 Besides the history of Schumpeter s life, the book gives several interesting insights into these [...]


    Of greatest interest to me is the context or frame of reference the biographical material provides for one of Schumpeter s most influential business concepts, creative destruction, which he introduced in his most popular book, Capitalism, Socialism, and Democracy, first published in 1942 Scholars have divided opinions as to the influences on Schumpeter s development of this concept They probably include Karl Marx, Friedrich Nietzsche, and Werner Sombart According to Schumpeter, there is a proces [...]


    McCraw, one of the most respected business historians, finds a perfect subject in Jo Schumpeter, one of the top economists of the last century along with Keynes, who occupied the other end of the economic thought spectrum The biography presents Schumpeter s personal life with many women as his carers, lovers and influencers followed by many tragedies through his life with some women he loved most being lost to death and the context of his times 2 world wars and Germany s political and economic r [...]


    Schumpeter was something else great economist, teacher, mentor and a true innovator Finding out about him through this book makes me want to read his classic Capitalism, Socialism, and Democracy So many of the terms we take for granted were dear to Schumpeter creative destruction, innovation, capitalism, venture capital, business strategy and business history to name a few He was truly a Renaissance Man raised and educated in the Austro Hungarian Empire, world traveler, lawyer, professor in Aus [...]

    Tyson Strauser

    Schumpeter was a truly incredible thinker While not a strict Austrian nor German economist, Schumpeteter s powerful research on the importance of the entrepreneur and the characteristics of the business cycle are still relevant today Though less well known than Keynes, Schumpeter s idea of creative destruction and the power of the entrepeneur to drive innovation will likely stand the test of time Unfortunately, history repeats itself and the current wave of Keynesian government intervention thro [...]


    I d say 3.5 stars for this book The concept of creative destructionism alone is worth digesting if it s not something you ve come across The Ecnomist has a weekly column in his name New developments, particularly creative ones vs adaptive, will inherently be disruptive from everything from the car replacing the carriage to the computer usurping the typewriter Beside the ideas reading about Schumpeter s life is fairly inspiring between his work ethic, affability among economists of all stripes, b [...]

    George Anderson

    An excellent read not only about a man s life and work but also the ideas he created and championed His views include the concept of creative destruction.This is an important book that probably won t be made into a movie but will influence ones thoughts on capitalism vs the managed economy crowd At some point even an idiot realizes that individual freedoms, economic systems and prosperity are interdependent.


    Read this for an academic reading group and it was very well received I liked the parts talking about his thinking and the historical surroundings than the particulars of his relationships, but it was fun to plow through I have some background material on my blogswrence economics 2


    I started this on the basis of Creative Destruction an interesting biography of an economist in economically interesting times.The book placed the phrase and concept in the context of the man, his experiences and history.

    Kevin Kosar

    A very good biographer of an incredible man and thinker My review of this book appeared in The Weekly Standard


    One of the most well written books I have read in a while Fascinating discourse on Schumpeter s thoughts, relevant last century and just as relevant today I wish some DC folks would read about him and less about Keynes.

    Jesper Balslev

    Wow, simpelthen wow.


    I won t stop learning about economics


    The weaving in of the personal to Schumpeter s intellectual development was fascinating Great insight on a seminal figure in innovation.

    Bob Costello

    Great Book Good range of economic theory.


    Interesting biography, but could have been half as long.


    Schumpeter has long been my intellectual hero, so my five stars are hardly impartial But if you have any interest in economics and innovation and history, this is a must read Highly recommended

    Ryan Wright

    Must read for folks in this academic area and in the practice of creativity.


    The greatest economists that we ve never heard of Schumpeter is seeing an awakening Too bad Keyes failed policies were in vogue in 1930 1970.

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