The innovation is hazardous, impossible for most producers. But if someone establishes a business having regard to this source of supply, and everything goes well, then he can produce a unit of product more cheaply, while at first the existing prices substantially continue to exist. He then makes a profit. Again he has contributed nothing but will and action, has done nothing but recombine existing factors. Again he is an entrepreneur, his profit entrepreneurial profit. And again the latter, and also the entrepreneurial function as such, perish in the vortex of the competition which streams after them. The case of the choice of new trade routes belongs here.
Joseph SchumpeterRelated topics
action business case choice competition continue done entrepreneur everything function having impossible innovation latter nothing produce product profit regard source supply trade unit vortex well while someoneRelated quotes
The basic hypothesis is that, while the total supply of entrepreneurs varies among societies, the productive contribution of the society's entrepreneurial activities varies much more because of their allocation between productive activities such as innovation and largely unproductive activities such as rent seeking or organized crime. This allocation is heavily influenced by the relative payoffs society offers to such activities. This implies that policy can influence the allocation of entrepreneurship more effectively than it can influence its supply. Historical evidence from ancient Rome, early China, and the Middle Ages and Renaissance in Europe is used to investigate the hypotheses.
William J. Baumol
I had hoped that out of so many stories you would at least have produced one or two, which could hardly be questioned, and which would clearly show that ghosts or spectres exist. The case you relate... seems to me laughable. In like manner it would be tedious here to examine all the stories of people, who have written on these trifles. To be brief, I cite the instance of Julius Caesar, who, as Suetonius testifies, laughed at such things and yet was happy. ...And so should all who reflect on the human imagination, and the effects of the emotions, laugh at such notions; whatever Lavater and others, who have gone dreaming with him in the matter, may produce to the contrary.
Baruch Spinoza
Evolutionary psychology was the organizing framework-the source of "explanatory adequacy” or a "theory of the computation”-that the science of psychology had been missing. Like vision and language, our emotions and cognitive faculties are complex, useful, and nonrandomly organized, which means that they must be a product of the only physical process capable of generating complex, useful, nonrandom organization, namely, natural selection. An appeal to evolution was already implicit in the metatheoretical directives of Marr and Chomsky, with their appeal to the function of a mental faculty, and evolutionary psychology simply shows how to apply that logic to the rest of the mind.
Steven Pinker
Markets are institutions that exist to facilitate exchange, that is, they exist in order to reduce the cost of carrying out exchange transactions. In an economic theory which assumes that transaction costs are nonexistent. markets have no function to perform, and it seems perfectly reasonable to develop the theory of exchange by an elaborate analysis of individuals exchanging nuts for apples on the edge of the forest or some similar fanciful example. This analysis certainly shows why there is a gain from trade, but it fails to deal with the factors which determine how much trade there is or what goods are traded.
Ronald Coase
Complete ignorance with regard to certain matters is perhaps the best thing for children; but let them learn very early what it is impossible to conceal from them permanently. Either their curiosity must never be aroused, or it must be satisfied before the age when it becomes a source of danger. Your conduct towards your pupil in this respect depends greatly on his individual circumstances, the society in which he moves, the position in which he may find himself, etc. Nothing must be left to chance; and if you are not sure of keeping him in ignorance of the difference between the sexes till he is sixteen, take care you teach him before he is ten.
Jean-Jacques Rousseau
