Schumpeter and entrepreneurship

Schumpeter

In Schumpeter, the entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part lower in all markets and industry innovations, creating new products, including new business models simultaneously. This way, creative destruction is largely responsible for the dynamism of the industry and economic growth in the long term. supposition that entrepreneurship leads to economic growth is an interpretation of the residual interest in the theory of endogenous growth and as such is very controversial in the academic economy. Another description posed by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements, such as replacing paper with plastic in the construction of a straw.
For Schumpeter, entrepreneurship resulted in new industries, but also in new combinations of currently existing entries. First example of Schumpeter is the combination of a steam engine and wagon current manufacturing technologies to produce the horseless carriage. In this case, the innovation, the car was transformational but did not require the development of new technology, the application of existing technologies in a new way. It does not replace the carriage immediately, but over time, incremental improvements that have reduced the cost and improved technology has led to the complete replacement of animal practice drawn vehicles in modern transportation. Despite the early 20th century contributions of Schumpeter, the traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks (instead assuming that resources would find each other through a system of price) . In this treatment, the entrepreneur was an implied but unspecified actor, but it is compatible with the concept of the entrepreneur as the agent of x-efficiency.