The Institutional Analysis of Entrepreneurship : Historist Aspects of Schumpeter's Development Theory

The concept of entrepreneurship in the German works ofJoseph Alois Schumpeter is considered, emphasizing its historicity, conceptualroots, and implications. Entrepreneurship in Schumpeter's work hasconventionally been interpreted as a dual concept, involving a shift from theearly model of the heroic individual founder of a new firm to the late model ofthe bureaucratic corporation with the routine operation of professionals inresearch and development offices. There is no categorical dualism in Schumpeter's developmental theory.Previous interpretations misrepresent the conceptual basis of Schumpeter'sapproach by ignoring the historicity of entrepreneurship, that a variety ofeconomic agents may carry out the entrepreneurial function situated inhistorically specific institutional, organizational, and technologicalsettings. Hence, a conceptual continuity exists in his works if a historicalperspective is taken. Schumpeter's German works already contain the major components of hiscomprehensive research efforts. Schumpeterian entrepreneurship isconceptualized as leadership during the innovation process, carried out inhistorically specific institutional settings. This insight will allow for areconstruction of the Schumpeterian perspective in theories of modern economicdevelopment.(TNM)