Through Schumpeter : public policy, social innovation and social entrepreneurship

Aspects of Schumpeter’s work that focus on the concepts of the entrepreneur, innovation and creative destruction, and their roles in economic development will be discussed. Schumpeter’s view that capitalism would decay, bringing about a characteristically socialist civilisation, is explored with reference to the “wicked” social and environmental problems of the 21st century. Drawing on Schumpeter’s analysis, potential roles for the state in facilitating developments in social entrepreneurship and social innovation are suggested. This paper identifies a number of areas of interest for further investigation and research. Reflecting on the hybrid nature of the field of social entrepreneurship and social innovation, it is likely that useful knowledge will be found in the practical experience of all three sectors (commercial, non-profit, and public), pointing to an empirical research agenda. It is suggested that the emerging field could also benefit from re-examining key economics authors through the social innovation lens, rethinking and combining their core concepts in new ways.