Financing of new technology: The discussion among economists
Financing of new technology: The discussion among economists

Author(s): Jan Toporowski
Subject(s): Economy, Business Economy / Management, Micro-Economics
Published by: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu
Keywords: new technology;venture capital;innovation;Smith;Bentham;Rae;Schumpeter;
Summary/Abstract: Purpose: This paper presents some of the disputes that have arisen among political economists concerning the financing of production embodying new technologies. Methodology: Literature review. Findings: In classical political economy, Adam Smith established the issue of financial risk as posing dangers to banking and economic activity in general. This gave rise to a view that the state should underwrite new technology, a view represented today by proponents of state industrial policy and green technologies. At the end of the nineteenth century the rise of monopoly finance capital raised questions about the ability of private enterprise to keep investment at the cutting edge of new technologies. The institutional vehicle for private enterprise promotion of new technology is venture capital, whose innovations are subject to the business.

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