Determinateness and Indeterminateness in Schumpeter’s Economic Sociology Kiichiro Yagi ( Kyoto...
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Transcript of Determinateness and Indeterminateness in Schumpeter’s Economic Sociology Kiichiro Yagi ( Kyoto...
Determinateness and IndeterminatenessDeterminateness and Indeterminateness in in
Schumpeter’s Economic SociologySchumpeter’s Economic Sociology
Kiichiro YagiKiichiro Yagi
(( Kyoto University)Kyoto University)
1.1. Was Schumpeter a Was Schumpeter a fatalist?fatalist?
Schumpeter These: Capitalism Schumpeter These: Capitalism transforms itself to socialism.transforms itself to socialism.
S stressed always that this is a S stressed always that this is a diagnosis of a doctor without any diagnosis of a doctor without any value judgment.value judgment.
Is this compatible with his Is this compatible with his innovation/entrepreneurship theory? innovation/entrepreneurship theory?
2. Economic Sociology2. Economic Sociology ““Economic analysis deals with the Economic analysis deals with the
question haw people behave at any time question haw people behave at any time and what the economic effects are they and what the economic effects are they produce by so behaving: produce by so behaving: economic economic sociologysociology deals with the question how they deals with the question how they came to behave as they docame to behave as they do. If we define . If we define human behavior widely enough so that it human behavior widely enough so that it includes not only actions but also the includes not only actions but also the social institutions that are relevant to social institutions that are relevant to economic behavior such as government, economic behavior such as government, property inheritance, contract, and so on, property inheritance, contract, and so on, that phrase tells us all we need.” (HEA, that phrase tells us all we need.” (HEA, p.21)p.21)
3. “Fragment of Cultural Sociology” 3. “Fragment of Cultural Sociology” in TED (1912)in TED (1912)
Response to data Response to data
→→Circular flowCircular flow
(general (general equilibrium)equilibrium)
Relative independenceRelative independence
Other areas as dataOther areas as data
(general(general
interdependence)interdependence)
Entrepreneurs’Entrepreneurs’
InnovationInnovation
→→ Economic Economic developmentdevelopment
Leaders’ activity in every arLeaders’ activity in every areaseas → → rel. aut. dev.→intrel. aut. dev.→interaction →eraction →Socio-cultural deSocio-cultural de
velopmentvelopment
static view
dynamic view
eco
nom
ics
economy other areas
3. continued3. continued ““statistically disposed individuals” and statistically disposed individuals” and
“leaders” in each fields (109)“leaders” in each fields (109) ““Virtually never would a new thought Virtually never would a new thought
be experienced as a new reality without be experienced as a new reality without the activity of a leader.”(110)the activity of a leader.”(110)
““In this total conception of the In this total conception of the development of culture the economy development of culture the economy also has its place.”(112)also has its place.”(112)
““Doubtlessly Doubtlessly we have to be satisfied we have to be satisfied with an indeterminate conceptwith an indeterminate concept.(112) .(112)
TED chap.7 in Backhaus ed (2003)TED chap.7 in Backhaus ed (2003)
4.Novelty and In-explicability4.Novelty and In-explicability in in DevelopmentDevelopment (1932) (1932) **
** JEL43JEL43 (( March March 2002005)5)
Explanation of “development” in Explanation of “development” in generalgeneral
Development: “transition from one Development: “transition from one norm of the economic system to norm of the economic system to another norm in such a way that this another norm in such a way that this transition cannot be decomposed transition cannot be decomposed into infinitesimal steps.”into infinitesimal steps.”
Emergence of “novelty”: neither Emergence of “novelty”: neither Darwin nor Mendel couldn’t explain Darwin nor Mendel couldn’t explain it.it.
5. Turn to “evolutionism”?(1)5. Turn to “evolutionism”?(1)
Rejected association with Rejected association with evolutionism in 1912evolutionism in 1912
Repeated in 1932Repeated in 1932
against 1) faith in progress, against 1) faith in progress,
2) evolutionism 2) evolutionism Choose “development” in the Eng. ed.Choose “development” in the Eng. ed.
ED (1934), but wrote it “evolution” in ED (1934), but wrote it “evolution” in correspondencecorrespondence
5. continued...5. continued...
““Evolution” was adopted in Evolution” was adopted in Business Business CyclesCycles (1939). (1939).
““The changes in the economic process The changes in the economic process brought about by innovation, together with brought about by innovation, together with all their effects, and the response to them all their effects, and the response to them by the economic system, we shall by the economic system, we shall designate by the term designate by the term Economic Economic EvolutionEvolution.” .” (97fn)(97fn)
Ground: distinction from “progress”Ground: distinction from “progress”
6. Another Innovation Theory6. Another Innovation Theory
Schumpeter encountered another Schumpeter encountered another innovation scholar in Abbot Payson innovation scholar in Abbot Payson Usher, author of Usher, author of A History of A History of Mechanical InventionsMechanical Inventions (1929). (1929).
Kept Usher’s 1933 plan “Social Kept Usher’s 1933 plan “Social Evolution and Historical Process”Evolution and Historical Process”
Acknowledged indebtedness to Usher Acknowledged indebtedness to Usher in BC, but stuck to strict distinction in BC, but stuck to strict distinction between invention and innovation between invention and innovation
6. continued ...: Usher’s peculiarity 6. continued ...: Usher’s peculiarity in the 1933 Planin the 1933 Plan
““Social evolution a multilinear process of dSocial evolution a multilinear process of dynamic adaptation”ynamic adaptation”
““Achievements of ‘genius’ conceived as coAchievements of ‘genius’ conceived as conditioned acts of synthesis”nditioned acts of synthesis”
““Scope of innovation as a social factor”Scope of innovation as a social factor” ““Development from implicit relations to expDevelopment from implicit relations to exp
licit relations”licit relations”
6. continued...: Usher’s criticism on 6. continued...: Usher’s criticism on SchumpeterSchumpeter
Usher’s contribution in 1951 JAS Usher’s contribution in 1951 JAS memorial publication (Harris ed.)memorial publication (Harris ed.)
Idealistic positionIdealistic position No usable theory of invention and No usable theory of invention and
innovationinnovation innovation as socially massive innovation as socially massive
process process
7. Partial Acceptance: concession?7. Partial Acceptance: concession?
Developments in other fields as dataDevelopments in other fields as data Changes in the data: Knowledge, Changes in the data: Knowledge,
institutions, and policiesinstitutions, and policies Creative response/adaptationCreative response/adaptation A more general theory beyond A more general theory beyond
Economic EvolutionEconomic Evolution
8. Last (intended) Lectures8. Last (intended) Lectures
American Institutions and Economic ProgreAmerican Institutions and Economic Progress (Walgreen Lectures, Jan. 1950) in Swedss (Walgreen Lectures, Jan. 1950) in Swedberg ed.1991berg ed.1991
Definition of InstitutionsDefinition of Institutions Stress on Group and ClassesStress on Group and Classes Principle of Indeterminateness: “emergencPrinciple of Indeterminateness: “emergenc
e of exceptional individuals” e of exceptional individuals”
8. continued ...8. continued ...
““The questions of whether the The questions of whether the process will lead to socialism ... are process will lead to socialism ... are questions for a prophet to answer, questions for a prophet to answer, but not for an analyst, who can only but not for an analyst, who can only list tendencies and list tendencies and possibilities.”(444)possibilities.”(444)
9. CONCLUSIONS9. CONCLUSIONS 1. S’s quest for unified view of social science with qualita1. S’s quest for unified view of social science with qualita
tive changetive change but not by the analogy of biological evolutionbut not by the analogy of biological evolution 2. S’s scheme is comprised of “general interdependence” 2. S’s scheme is comprised of “general interdependence”
and “distinction between statics and dynamics”.and “distinction between statics and dynamics”. 3. Determinateness and In determinateness coexist in th3. Determinateness and In determinateness coexist in th
e dual and interdependent structure of S’s schemee dual and interdependent structure of S’s scheme Isomorphic but relatively autonomous areas of social lifeIsomorphic but relatively autonomous areas of social life Coevolution of economic and other areas Coevolution of economic and other areas Emergence of novelty is in the coreEmergence of novelty is in the core
9. continued ...9. continued ...
S was not a fatalist!S was not a fatalist! Due to the “indeterminateness” the Due to the “indeterminateness” the
prediction is impossible, only talk prediction is impossible, only talk about tendency and possibility.about tendency and possibility.
Recommendation to counter the Recommendation to counter the tendency is also banned to a value-tendency is also banned to a value-free social scientist!free social scientist!
THANK YOU FOR ATTENTION!!THANK YOU FOR ATTENTION!!