The neo-Schumpeterian approach to innovation and Keynes’s probability: initial explorations

Abstract

ABSTRACT The aim of the paper is to show that Keynes’s concept of probability can enrich the understanding of the process of the introduction of innovation offered by the Neo- Schumpeterian approach. To deal with uncertainty Neo-Schumpeterians introduce the concept of routines. What is suggested here is that the concepts of Degree of Rational Belief and Weight of Argument, which come from the Keynes theory of probability, when used together with the concept of routines, help understand the rationality of the decision-making process in introduction of an innovation.

Keywords

• Neo-Schumpeterian analysis
• uncertainty
• innovation
• probability