Complexity , Innovation , and Development
represented a clash between Schumpeter ’ s systems approach to economic development and dominant equilibrium theories that dominated economic thought . Schumpeter ’ s detractors institutionalized their theories in various international organizations , especially the United Nations , the World Bank , and the International Monetary Fund . They were therefore able to lock in their ideas in ways that made Schumpeterian creative destruction a long and tedious process .
Schumpeter laid out the foundations for understanding how economies change over time . That was a century ago . Several enduring themes of his theory remain valid today and should be part of the core of the policies of emerging nations . First , priority should be given to the role of innovation not only in transforming economic systems to new levels of performance , but also in spreading prosperity . Second , emphasis should be placed on the role of entrepreneurs in the private and public sectors as critical agents of innovation . Third , reducing all types of risks associated with innovation should be a central feature of economic governance . Finally , private entrepreneurs and public servants should undertake important but complementary leadership roles . Elaborating on these themes and adjusting them to reflect contemporary circumstances will help to advance our understanding and management of economies as complex systems .
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