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Transformation Of Economic Systems: The Bio-Economy Case

A. Pyka
Published 2017 · Business

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To improve sustainability, the global economic system has to undergo severe transformation processes. This chapter deals with the possibility of an innovation-triggered transformation towards a knowledge-based bioeconomy, which is supposed to overcome the current lock-in into a fossil fuel-based CO2-intensive production. To do this, a Neo-Schumpeterian view is applied that highlights the complex interplay in knowledge-generation and -diffusion processes between firms, consumers and government institutions. By applying the Neo-Schumpeterian approach it becomes obvious that innovation and economic growth are part of the solution and not part of the sustainability problem. The shift from quantitative growth—prevailing in textbook economics—to qualitative development—prevailing in Neo-Schumpeterian economics—makes the difference and affects all agents and institutions in an economic system, which needs to be designed as a dedicated innovation system supporting the transformation towards a knowledge-based bioeconomy.
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