Profit is the payment you get when you take advantage of change. Joseph A. Schumpeter More Quotes by Joseph A. Schumpeter More Quotes From Joseph A. Schumpeter Innovation is the market introduction of a technical or organisational novelty, not just its invention. Joseph A. Schumpeter invention novelty innovation The function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on. Joseph A. Schumpeter opening-up entrepreneur reform At the heart of capitalism is creative destruction. Joseph A. Schumpeter destruction creative heart Success depends on intuition, on seeing what afterwards proves true but cannot be established at the moment. Joseph A. Schumpeter intuition prove moments The typical citizen drops down to a lower level of mental performance as soon as he enters the political field. He argues and analyzes in a way which he would readily recognize as infantile within the sphere of his real interests. He becomes primitive again. Joseph A. Schumpeter typical political real As a matter of fact, capitalist economy is not and cannot be stationary. Nor is it merely expanding in a steady manner. It is incessantly being revolutionized from within by new enterprise, i.e., by the intrusion of new commodities or new methods of production or new commercial opportunities into the industrial structure as it exists at any moment. Joseph A. Schumpeter capitalist-economy matter opportunity Situations emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully if they could weather a particular storm. Joseph A. Schumpeter storm creative weather Innovations are changes which cannot be decomposed into infinitessimal steps. Joseph A. Schumpeter innovation steps I set out to become the greatest lover in Vienna, the greatest horseman in Austria, and the greatest economist in the world. Alas, for the illusions of youth: as a horseman, I was never really first-rate. Joseph A. Schumpeter austria vienna world Nothing is so treacherous as the obvious. Joseph A. Schumpeter treacherous obvious The capitalist engine is first and last an engine of mass production which unavoidably also means production for the masses. . . . It is the cheap cloth, the cheap cotton and rayon fabric, boots, motorcars and so on that are the typical achievements of capitalist production, and not as a rule improvements that would mean much to the rich man. Queen Elizabeth owned silk stockings. The capitalist achievement does not typically consist in providing more silk stockings for queens but in bringing them within reach of factory girls. Joseph A. Schumpeter queens girl mean The strategic stimulus to economic development in Schumpeter's analysis is innovation, defined as the commercial or industrial application of something new---a new product, process or method of production, a new market or source of supply, a new form of commercial, business or financial organization. Joseph A. Schumpeter innovation analysis organization The success of everything depends on intuition, the capacity of seeing things in a way which afterwards proves to be true, even though it cannot be established at the moment, and of grasping the essential fact, discarding the unessential, even though one can give no account of the principles by which this is done. Joseph A. Schumpeter intuition principles giving Politicians are like bad horsemen who are so preoccupied with staying in the saddle that they can't bother about where they're going. Joseph A. Schumpeter saddles politician bother We always plan too much and always think too little. Joseph A. Schumpeter business littles thinking We always plan too much and always think too little. We resent a call to thinking and hate unfamiliar argument that does not tally with what we already believe or would like to believe. Joseph A. Schumpeter hate believe thinking Capitalism inevitably and by virtue of the very logic of its civilization creates, educates and subsidizes a vested interest in social unrest. Joseph A. Schumpeter social-unrest logic civilization Creative Destruction is the essential fact about capitalism. Joseph A. Schumpeter essentials creative facts The ballot is stronger than bullets. Joseph A. Schumpeter ballots bullets stronger Geniuses and prophets do not usually excel in professional learning, and their originality, if any, is often due precisely to the fact that they do not. Joseph A. Schumpeter originality genius facts
