Schumpeterian growth theory, Schumpeter, and growth policy design

Philippe Aghion (1, 2, 3, 4) , Agnès Festré (5)

1 PJSE - Paris Jourdan Sciences Economiques
2 PSE - Paris School of Economics
3 Department of Economics, Harvard University
4 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
5 GREDEG - Groupe de Recherche en Droit, Economie et Gestion

The purpose of this paper is to show that both Schumpeterian growth theory and Schumpeter’s own thinking can be helpful in order to think about growth policy design and the role of the state. This reflection offers an economic policy roadmap and gives rise to concrete proposals in terms of an adequate mix of demand and supply-side options depending on the country’s distance to the world technology frontier.

Mots clés: Creative destruction; Distance-to-frontier; Endogenous innovation; Schumpeterian growth models; Growth policy design

Domaines: Economies et finances

Philippe Aghion, Agnès Festré. Schumpeterian growth theory, Schumpeter, and growth policy design. Journal of Evolutionary Economics, 2017, 27 (1), pp.25-42. ⟨10.1007/s00191-016-0465-5⟩. ⟨halshs-01496912⟩