World economy and international economic relations

How innovation maintains and develops democracy

Economic Annals-XXI

Economic Annals-ХХI: Volume 165, Issue 5-6, Pages: 23-26

Citation information:
Sandal, J.-U. (2017). How innovation maintains and develops democracy. Economic Annals-XXI, 165(5-6), 23-26. doi: https://doi.org/10.21003/ea.V165-05

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Jan-Urban Sandal
D.Sc. (Economic History),
Professor, Rector,
Fil. Dr. Jan-U. Sandal Institute
31 Kløverveien Str., Finstadjordet, 1475, Norway
http://www.janusandal.no
jan-u.sandal@janusandal.no
ORCID ID: http://orcid.org/0000-0001-8072-0822

How innovation maintains and develops democracy

Abstract. Innovation is a superior driving force for economic development in a capital, market-based economy. Entrepreneurs carry out innovations, be it business or social entrepreneurs. Theoretically, according to the Franco-Austrian-Norwegian (FAN) scientific tradition, innovation is defined as a new combination of the first and second input factors in a production function. The result of successful business and social entrepreneurship is economic development, equal rights, a better world, peace, freedom, a more secure society for everyone, as well as technological, economic and social progress. These are all parameters that define the modern Western style democracy, and even more, these prerequisites represent the conditions for the maintenance, construction and dissemination of democracy to new territories throughout the world. Successful entrepreneurs are private individuals whose role can never be substituted by any group of members, be it political parties, governments, boards of directors, committees or power based authorities like the political boss. Throughout history, we have seen national states, big and small, trying to overrule the wisdom of science and that they have failed. We have seen the horrors imposed on civil populations, both nationally and globally, as a result of the failed Marxist-based socialist political ideology concerning the distribution of wealth. The process of wealth creation lays the foundation of a democracy, and only individuals can undertake the formation of economic progress.

Keywords: Innovation; Entrepreneurship; Democracy; Individual and Economic Freedom; Caring Economy; Sharing Economy

JEL Classification: B21; B22; D31; D83; P16

Acknowledgments: The article is based on international independent science and is unpublished material presented for the first time at the Annual International Scientific Conference on Economic Development and Legacy of Simon Kuznets on June 1-2, 2017 and soon after published in the Economic Annals-XXI Journal.

DOI: https://doi.org/10.21003/ea.V165-05

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Received 14.06.2017

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