Industry Evolution as a Game: Schumpeter’s Theory on Innovation

By EcoAction at October 24th, 2023

On June 9, 2023, Dr. Florian Maurer presented his research paper entitled "Industry Evolution as a Game: Schumpeter’s Theory on Innovation meets Game Theory" at the annual EURAM conference in Dublin, Ireland.
Joseph Alois Schumpeter is renowned as a pioneer in innovation management, having resolved the dispute between the Historic School and the Austrian School of Economic Thought. He introduced the concept of the dynamic entrepreneur, who disrupts and innovates. Schumpeter's work is categorized into Mark 0 to Mark III models, representing different phases. The Mark 0 model portrays a static economy influenced by external innovation, serving as Schumpeter's starting point. The Mark I model introduces the dynamic entrepreneur, while the Mark II model showcases established firms embracing adaptation and innovation. The comprehensive Mark III model incorporates society and politics. This paper explores the Mark models, their structural characteristics, and their implications for business case development and game-theoretical analysis.