“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

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

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Barry Eichengreen10

Economist 1952

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“The essential feature of a capitalist world-economy… is production for sale in a market in which the object is to realize the maximum profit is the essential feature of a capitalist world-economy. In such a system production is constantly expanded as long as further production is profitable, and men constantly innovate new ways of producing things that will expand the profit margin.”

Immanuel Wallerstein (1930–2019) economic historian

Wallerstein (1979) The Capitalist World-Economy. p. 15.

“The rise of Communist states - dictatorship with centrally planned, nationalized economies - did more to distort and confuse the meaning of socialism than any other event in history.”

Michael Harrington (1928–1989) American political writer

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“How could such industries as software, semiconductors, and computers have been so innovative despite historically weak patent protection? We argue that if innovation is both sequential and complementary—as it certainly has been in those industries—competition can increase firms’ future profits thus offsetting short-term dissipation of rents. A simple model also shows that in such a dynamic industry, patent protection may reduce overall innovation and social welfare. The natural experiment that occurred when patent protection was extended to software in the 1980's provides a test of this model. Standard arguments would predict that R&D intensity and productivity should have increased among patenting firms.”

Eric Maskin (1950) American Nobel laureate in economics

Bessen, James, and Eric Maskin. " Sequential innovation, patents, and imitation http://ec.europa.eu/internal_market/indprop/docs/comp/replies/appendix1_en.pdf." The RAND Journal of Economics, 40.4 (2009): p. 611.

“Freedom that socialism economic violates incentive, destroys, muffles innovation and entrepreneurship, and innovation undermines meritocracy.”

Paul D. Miller (academic) American academic

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“I know that some people in the U. S. associate the Nordic model with some sort of socialism… Therefore, I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy… The Nordic model is an expanded welfare state which provides a high level of security to its citizens, but it is also a successful market economy with much freedom to pursue your dreams and live your life as you wish.”

Lars Løkke Rasmussen (1964) Danish politician

"Nordic Solutions and Challenges: A Danish Perspective" http://www.vox.com/2015/10/31/9650030/denmark-prime-minister-bernie-sanders (October 2015), speech to Harvard's Kennedy School of Government. <br class="br">2010s, 2015

“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

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“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.

“I think that this is Schumpeter’s main legacy to economics: the role of technological and organizational innovation in driving and shaping the growth trajectory of capitalist economies.”

Robert Solow (1924) American economist

"Heavy Thinker" (2007)

“An economy based on information, with its tendency to zero-cost products and weak property rights, cannot be a capitalist economy.”

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PostCapitalism: A Guide to our Future (2015)

“In contrast to the punctuated equilibrium model of change, this inductive study of multiple-product innovation in six firms in the computer industry examines how organizations engage in continuous change. Comparisons of successful and less-successful firms show, first, that successful multiple-product innovation blends limited structure around responsibilities and priorities with extensive communication and design freedom to create improvisation within current projects. This combination is neither so structured that change cannot occur nor so unstructured that chaos ensues. Second, successful firms rely on a wide variety of low-cost probes into the future, including experimental products, futurists, and strategic alliances. Neither planning nor reacting is as effective. Third, successful firms link the present and future together through rhythmic, time-paced transition processes. We develop the ideas of "semistructures," "links in time," and "sequenced steps" to crystallize the key properties of these continuously changing organizations and to extend thinking about complexity theory, time-paced evolution, and the nature of core capabilities.”

Shona Brown (1960) businessperson

Source: "The art of continuous change", 1997, p. 1; Abstract

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