Social innovation and the Schumpeterian entrepreneur: two theoretical readings

The entrepreneur's role is fundamental in the theory of innovation devised by Schumpeter. However, the concept of entrepreneur is still controversial. On the one hand, it does not seem guided by an egoistic interest as proposed by the advocates of rational choice theory, and secondly, it is not entirely constrained across institutional boundaries according to the principles of institutionalist theory. The entrepreneur is able to remove barriers to innovation. In this paper, we discuss the role of the entrepreneur in the development of social innovation. The knowledge acquired in the innovation process are complemented by advances in the rational choice theory of and the institutionalist theory. Thus, the role of the entrepreneur is better understood as being subject to a tension between individual interest and common good.