Kirzner’s entrepreneur v Schumpeter’s entrepreneur
Posted by John Humphreys on March 3, 2007
Immitation requires a Kirznerian entrepreneur and innovation requires a Schumpeterian entrereneur
Kirzner entrepreneur notices something that is costlessly knowable, but nobody else knew. Still needs to implement it (involves risk).
Risk drives innovation. In a competitive riskless environment there may still be an incentive towards efficiency, but little incentive towards innovation. That is, business will have a lower demand for new knowledge.
