2. In this case , an audience asks you to explain issues from Joseph Schumpeter economic developement theory.

a. According to Schumpeter what was an innovation and what was its importance for the economy?

b. What was the role of the entrepreneur?

c. What is the importance of market competition in the theory of economic development of J.Schumpeter?

d. why were the centrally planned economies, such as the former Soviet Union, not able to sustain economic growth? (according to J.Schumpeter theory)