Schumpeter’s business cycle theory can be divided into three component parts: entrepreneurs produce innovations, innovations generate local plan failures, and local plan failures at times grow sufficiently large to generate global recessions. The third component of Schumpeter’s theory is susceptible to the diversification argument, i.e. small micro-changes tend to average out in a large economy thereby generating little macro-fluctuation. While Schumpeter was cognizant of this problem, he did not develop an explicit mechanism to nullify the averaging out of micro-changes. We argue that the network dynamics generated by Schumpeterian innovations is the missing link in his theory. More specifically, innovations change the production network by prodding firms to seek new suppliers of inputs and new buyers of output. These production network dynamics ensure that micro-changes are not independent of each other, rather micro-changes occur in response to each other, thereby nullifying the diversification argument. Production network dynamics are capable of transforming micro-flux into macro-turbulence.

中文翻译：

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熊彼特的商业周期理论和多元化论点

熊彼特的商业周期理论可以分为三个组成部分：企业家进行创新，创新产生局部计划失败，局部计划失败有时增长到足以引起全球衰退的程度。熊彼特理论的第三个组成部分很容易受到多元化论点的影响，即微小的微观变化在大型经济体中趋于平均，从而几乎不会产生宏观波动。尽管熊彼特意识到了这个问题，但他并未开发出明确的机制来使微变化的平均值无效。我们认为，熊彼特式创新产生的网络动力学是他的理论中缺失的环节。更具体地说，创新通过促使公司寻求新的投入供应商和新的产出购买者来改变生产网络。这些生产网络的动态性确保了微观变化不是彼此独立的，而是微观变化相互响应而发生，从而使多元化论点无效。生产网络动力学能够将微通量转换为大湍流。