The role of innovations in Kalecki and Schumpeter

PABLO GABRIEL BORTZ

Conferencia; 12º Annual Conference European Society for the History of Economic Thought; 2008

This paper compares the role of innovations in the theories of Schumpeter and Kalecki about the evolution of the capitalist system. While Schumpeter considered innovations are responsible for the cyclical movement of the economy, Kalecki thought of them as the principal cause of the long run trend, though he doesn?t considered it as a concept independent of the business cycle. The differences are due to the different underlying sociological structure in their economic explanations, to whether there exists a tendency of the economy towards an equilibrium situation, and to the different time framework covered by them.