Prophet of Innovation: Joseph Schumpeter and Creative Destruction By Thomas K. McCraw (Harvard University Press, 719 pp., $35) Click here to purchase

Innovation is not the same thing as invention.
Anyone can invent a new product or a new technique of production. The entrepreneur is the one who first sees its economic viability, bucks the odds, fights or worms his way into the market, and eventually wins or loses. Each win means profit for the entrepreneur and his backers, and it also means a jog upward for the whole economy. In the course of this process, which cannot possibly run smoothly, many businesses, individuals, and institutions, themselves founded on earlier successful innovations, will be undermined and swept away.
Schumpeter called this birth-and-death process "creative destruction," and realized before anyone else that it was the main source of economic growth. There is no feasible alternative for capitalism; this is capitalism. Here is a characteristically strong statement: "Without innovations, no entrepreneurs; without entrepreneurial achievement, no capitalist returns and no capitalist propulsion. The atmosphere of industrial revolutions--of 'progress'--is the only one in which capitalism can survive."

The picture generated by classical and
neoclassical economics had none of this dynamism, turbulence, and intrinsic uncertainty. (Malthus was perhaps a partial exception.) Smooth trends and stationary states, equilibria of one kind or another, predominated. There is a sense in which Schumpeter could claim to have been the progenitor of a torrent of modern research that analyzes the dynamics of profit-driven innovation and innovation-driven economic growth. Even creative destruction has been translated into equations. (The pioneers were Philippe Aghion and Peter Howitt, and others have followed.)

Schumpeter derived from this analysis a lasting bias in favor of big business. "American opinion is so antibig business," he wrote, "precisely because big business has made the country what it is now and in doing so it has set the standard of the American soul: who is not a part of big business feels he does not meet the standard and by compensation turns against it." Clearly a successful innovation confers, in his view, at least a temporary monopoly. Without the lure of those monopoly profits, there would be no incentive for anyone to bear the risks of entrepreneurship. Schumpeter believed that large firms were both the source and the result of successful innovation; and so tampering with them would be dangerous. But the issue is more subtle than that. The English economist John Hicks once remarked that "the best of all monopoly profits is a quiet life," meaning that a seller with monopoly power might settle for less than the largest possible profit in order to avoid attracting rivals who would have to be beaten off amid turmoil and uncertainty. There is much evidence that having to compete with best practice is itself an important spur both to innovation and to other aspects of industrial performance. Maybe there is an optimal intensity of competition.

I think that this is Schumpeter's main legacy to
economics: the role of technological and organizational innovation in driving and shaping the growth trajectory of capitalist economies.
Whole subfields of economics now pursue the subject of the care, feeding, and consequences of innovation, using qualitative and quantitative, historical and mathematical methods. McCraw gives only a few pages to Theory of Economic Development. He certainly understands that it is fundamental, but he does not place it as the summa that it is.

entrepreneurship education and training

Gorman et al (1997)
there has been an increase in the amount of empirical research conducted, specially in the areas of educational process and structure
Vesper (1982) demonstrated that entrepreneurship can be taught

Pablo Turner

De no ser por su encanecida cabellera, el gerente general de Viña San Pedro, Pablo Turner, se habría confundido entre los universitarios que el viernes miraban el partido de tenis de Fernando González, en el coffe break del foro con que los convocó Icare. Porque su atuendo usualmente informal se acerca más al de un estudiante que al protipo de gerente.

Turner expuso a los alumnos de los últimos años de las carreras de ingeniería y derecho de distintas universidades, que concurrieron a escuchar experiencias de vida de empresarios y ejecutivos, una especie de decálogo de cómo tener éxito. Pero de seguro quienes escucharon más atentamente su exposición fueron su mamá y su hija Catalina, sentadas casi en la última fila.

Después de comentar su paso por la universidad - donde lo que más estudiaba era finanzas porque sus habilidades iban por el lado comercial- y que tras pasar de la gerencia general de Falabella a la viña se siente como partiendo de nuevo, les dio sus consejos:Hay que ser optimista y persistente. Tener iniciativa y seguridad en sí mismo.Mantenerse atento a los cambios que experimentan los consumidores, para adelantar hacia dónde van.