Innovation, institutions and competition : a reflection on the contribution of the Soft Budget Constraint approach
Résumé
The purpose of this paper is to analyze the contribution of SBC analytical framework to the understanding of the interactions between innovation and (financial) institutions. Surveying the contribution of SBC literature to innovation processes, this paper emphasizes the original concept of competition or of 'dynamism' (Kornai 2010) developed by SBC approach. This paper also points out the role of financial institutions in coordination problems and in firm(s) selection process. We briefly conclude examining the possible theoretical connections between SBC and well-known Schumpeterian approaches.