International trade and entrepreneurship – why Germany is so overwhelming among EU-27-countries?
Problems and Perspectives in Management
Clustered Multinational Corporations (MNCs) own elements of trustified capitalism in terms of Joseph Schumpeter. MNCs invest heavily in global R&D and marketing, and they signal market power in the markets and countervailing power in politics as John Kenneth Galbraight noticed. Because NMCs dominate the global commodity markets, they can collectively determine the rules of the game in the global economic evolution or revolution. The dilemma in most EU-27-countries is that they have not been
... y have not been able to develop their own management doctrines. They apply the U.S. Harvard-Chicago Industrial Organization (IO) model without critics. The most influential writer has been Michael Porter. His models of competitive strategy or national diamonds, show clusters are far too trivial to be applicable in EU-27 countries that have a long history as the civilized nations compared with the. U.S., Germany is an exception. Germany and the German speaking Europe has their own management doctrine initiated by Friedrich List and modified by Joseph Schumpeter. List argued that economic policy had to be adapted to the needs of specific nations to create the National System of Innovation for Germany. Schumpeter gave micro level advices of economic incentives for entrepreneurs. The third economic miracle (Wirtschaftswunder) in Germany since 1990s is a combination of List's and Schumpeter's thinking. Germany's global success recipe is more useful for EU-27 countries than Harvard-Chicago IO model.