“Aside from Yugoslavia, experiments with decentralization did not extend to planning innovation, the greatest weakness of the socialist economies. Even where markets were allowed to exert more influence over current production, the state was still responsible for planning the future. And state socialism provided only weak incentives for innovation. The Schumpeterian pressure that forced capitalist firms to innovate or die was not present in the planned economy.”

Barry Eichengreen, The European economy since 1945 : coordinated capitalism and beyond, Ch. 5 : Eastern Europe and the Planned Economy

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Aside from Yugoslavia, experiments with decentralization did not extend to planning innovation, the greatest weakness o…" by Barry Eichengreen?
Barry Eichengreen photo
Barry Eichengreen 10
Economist 1952

Related quotes

Immanuel Wallerstein photo
Eric Maskin photo
Paul D. Miller (academic) photo
Lars Løkke Rasmussen photo
John McCain photo

“Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.”

John McCain (1936–2018) politician from the United States

In an article in Contingencies magazine, September/October, 2008 http://www.contingencies.org/septoct08/mccain.pdf
2000s, 2008

Philippe Kahn photo

“Invention is the root of innovation. Innovation is the major force for change in the future.”

Philippe Kahn (1952) Entrepreneur, camera phone creator

Comments made in the Q and A part of a speech at the Silicon Valley computer museum in 2005 regarding the energy spent in Silicon Valley at managing perception as opposed to creating new technology. In response to a question about the power of venture capital and consumer marketing and how it is determining the future of technology.

Robert Solow photo
Paul Mason (journalist) photo
Shona Brown photo

Related topics