Innovative entrepreneurs drive economic growth through creative destruction and conflict.
The article discusses how innovative entrepreneurs drive economic growth by creating new technologies that replace old ones. This process, known as creative destruction, leads to conflict between established companies and new ones. The researchers highlight the importance of economic policies and institutions in shaping incentives for entrepreneurial investments. They also address debates on middle income trap, secular stagnation, rising income inequality, and firm dynamics. The Schumpeterian theory offers insights for designing effective growth policies.