One of the most influential voices in modern economic theory stood out for advocating innovation as a driver of development. In Mozambique, structural challenges largely reflect the dilemmas that Schumpeter anticipated.
Joseph Alois Schumpeter (1883–1950) distinguished himself as a major economic thinker by proposing that the engine of development was not merely capital accumulation or macroeconomic stability, but innovation. For the economist, economic progress results from the ability of entrepreneurs to introduce new products, processes, and organizational methods, which inevitably replace existing structures. This process, which he termed “creative destruction,” would continuously redefine the functioning of economies.
Unlike the classical view, which focused on the equilibrium of economic indicators (e.g., supply, demand, and prices) as the ultimate goal, Schumpeter saw instability as a source of dynamism. Capitalism, in his view, thrives on cycles of disruption and recomposition, in which science and technology play central roles. Schumpeter also argued that it was not enough to improve what already existed: one must break paradigms. Science and innovation, in his perspective, should be understood as tools for technical progress and as drivers capable of reshaping entire societies.
From his perspective, each major scientific advancement (from the steam engine to electricity, and from computing to biotechnology) triggered a wave of economic and social changes, which extended beyond the production of new goods to include new markets, new forms of labor organization, and new lifestyles.
Criticisms of Schumpeter’s Theories
Schumpeter is often regarded as a visionary, but he is not without critics. A common critique is that his emphasis on the entrepreneur as the central agent of progress underestimates the importance of collective and institutional structures. Many economists argue that innovation and development depend primarily on robust public policies, investment in education, and adequate regulatory systems.
Other critics point out that “creative destruction,” while effective in explaining capitalism’s dynamism, tends to overlook negative social impacts, such as mass unemployment caused by new technologies or rising inequality. Indeed, innovation can be a driver of wealth, but it can also exclude entire communities if not accompanied by inclusion policies.
In Mozambique, this criticism is particularly relevant: for instance, digitalization may accelerate the exclusion of populations without internet access or basic education. The challenge lies in creating rules that make innovation a lever of inclusion, rather than a factor of social segmentation.
Joseph Schumpeter argued that it is not enough to improve: one must break paradigms. Science and innovation should be understood as instruments of progress.
Mozambique: Between Fragilities and Opportunities
Mozambique faces a dual reality. On one hand, there are structural deficiencies: investment in scientific research is low, universities still face obstacles in creating effective bridges with the productive sector, and public policies rarely prioritize innovation as a development driver. These weaknesses make the country vulnerable to external shocks and dependent on the import of knowledge and technology.
On the other hand, there are obvious opportunities. Increasing digitalization, accelerated by the spread of mobile internet, opens space for startups and entrepreneurial initiatives. The youth, representing the majority of the population, show strong aptitude for integrating new technologies, from digital business platforms to innovative solutions in agriculture and commerce. Furthermore, Mozambique’s strategic position in Africa and investments in energy (particularly natural gas, as well as solar and hydroelectric energy) can be catalysts for transformation if combined with local innovation.
Here, Schumpeter’s vision serves as a guide: it is necessary to create an environment where entrepreneurs can act as engines of “creative destruction,” replacing outdated practices with more efficient and inclusive models.
Lessons from Joseph Schumpeter for Mozambique
Schumpeter’s thought suggests that Mozambique should rethink its development strategy. Focusing solely on gas or coal exploitation is a short-term vision. True transformation, he argues, will occur when science, technology, and entrepreneurship become integral parts of the national economy, which involves:
- Strengthening scientific research in universities and technical institutes
- Encouraging startups and business incubators that provide local solutions to local problems
- Creating consistent public policies linking innovation, industry, and social development
- Fostering international partnerships for knowledge and technology transfer
If Mozambique can mobilize these pillars, it can turn its weaknesses into strengths, moving closer to the vision of disruptive progress advocated by Joseph Schumpeter.
Text: Celso Chambisso • Photo: D.R.
