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The Dynamism of Nations: Toward a Theory of Indigenous Innovation

Edmund S. Phelps · 2018 · Journal of applied corporate finance

Summary. Phelps argues that standard economic models fail to explain modern economies because they ignore indigenous innovation—genuinely new ideas driven by human creativity, not just technological parameter shifts. Western nations have lost dynamism because corporatist values, regulation, and social protection have replaced the modern values of individualism and visionary thinking that historically fueled mass innovation and prosperity. Restoring economic vitality requires cultural change, not just policy reform.

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Phelps, E. S.. (2018). The Dynamism of Nations: Toward a Theory of Indigenous Innovation. Journal of applied corporate finance. https://doi.org/10.1111/jacf.12306

Details

DOI
10.1111/jacf.12306
Countries
United Kingdom
Regions
Europe
Categories
innovation-theory, policy
Added
2026-04-28