Schumpeterian rent

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Schumpeterian rents are earned by innovators and occur during the period of time between the introduction of an innovation and its successful diffusion. It is expected that successful innovations, in time, will be imitated, but until that occurs, the innovator will earn Schumpeterian rents. This term was coined by the economist Joseph Schumpeter. This type of rent is also called Entrepreneurial rent. [1]

Ricardian and Schumpeterian rents are two types of economic rent, although Schumpeterian rent doesn't necessarily involve any special political privilege.

References[edit]

  1. ^ Collis, Montgomery. Corporate Strategy: A Resource based Approach Second Edition, p44