Page "Historical school of economics" Paragraph 9

In the Anglosphere ( English speaking countries ), the Historical school is perhaps the least known and least understood approach to the study of economics, because it differs radically from the now-dominant Anglo-American analytical point of view.

Yet the Historical school forms the basis-both in theory and in practice-of the social market economy, for many decades the dominant economic paradigm in most countries of continental Europe.

The Historical school is also a source of Joseph Schumpeter's dynamic, change-oriented, and innovation-based economics.

Although his writings could be critical of the School, Schumpeter's work on the role of innovation and entrepreneurship can be seen as a continuation of ideas originated by the Historical School, especially the work of von Schmoller and Sombart.