# Global Schumpeterian Dynamics with Structural Variations

A.N. Kirillov, A.M. SazonovIn this paper, we present the investigations developing the schumpeterian theory of endogenous evolution of economic systems. The proposed approach allows to simulate the emergence and propagation of new technologies. We develop a mathematical model of dynamics of sector capital distribution over efficiency levels on the base of the system of nonlinear differential equations. In order to take into account the boundedness of the economic growth conditioned by the boundedness of the markets, the resource base and other factors, we introduce the notion of economical niche volume. The scenario of the emergence of the new highest efficiency level is proposed. In order to simulate the process of the emergence of the new highest efficiency level, the notion of intellectual capital is proposed. According to the proposed scenario, the new level emerges when the intellectual capital achieves the threshold value. Herewith, the dimension of the dynamic system is varied. The necessary condition for the functioning of the new level is formulated. The invariant set of the dynamic system is defined. The local stability of the equilibria is investigated. The global stability of the dynamic system is established on the base of a geometrical method. The proposed models allow to evaluate and predict the dynamics of the technological levels of the economic sector firms development.Full text

- Keywords
- dynamic systems; Schumpeterian dynamics; stability.
- References
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