Revista de Economía Institucional
Print version ISSN 0124-5996
SANCHEZ-ANCOCHEA, Diego. CAPITALISM, DEVELOPMENT AND THE STATE. A CRITICAL ACCOUNT OF SCHUMPETERS THEORY OF THE STATE. Rev.econ.inst. [online]. 2005, vol.7, n.13, pp. 81-100. ISSN 0124-5996.
Current theories of the State would benefit from a new look at the economic role of the State in the work of the great economists of the 19th and 20th Centuries. Schumpeters emphasis on the role of technological innovation in long-term economic growth makes his work particularly interesting for development economics. However, Schumpeters rejection of the States role in income redistribution is too simplistic and contradictory. Structural change may enhance the prospects for long-term growth, but also creates social and economic disruptions. This paper explores this basic contradiction and briefly discusses the application of Schumpeters theory of the State to new industrialized countries in East Asia and Latin America.
Keywords : Schumpeter; economic policy; technological innovation; income distribution; new industrialized countries.