Innovation competition in global markets and Schumpeter's entrepreneur

Joseph Schumpeter viewed entrepreneurship as the fourth factor of production, as the catalyst of economic growth and revitalization. He describes capitalism as developing by gales of creative destruction, by which new technologies supplant the old ones. Our contribution is that the current and future challenges in the global economy can best be solved through a better understanding of Schumpeterian entrepreneurship in its modern, global contexts. A major paradox of the literature on entrepreneurship is that the process of opportunity recognition and exploitation has been analyzed in a vacuum separate from the market structures. The fact is that multinational corporations (MNCs) dominate commodities all over the world. There are some reasons for the dominance of NMCs. One of them is the evolution of institutions which protect intellectual or immaterial property.German “hidden champions” is the group of firms that has succeeded to combine market-driven business logic and continuous innovations. These companies occupy global leadership positions despite their small size. The greatest innovations are likely to occur from the cross-fertilization of sectors and professions.