Abstract

The aim of the paper is to show that Keynes’s concept of probability can enrich
the understanding of the process of the introduction of innovation offered by the Neo-
Schumpeterian approach. To deal with uncertainty Neo-Schumpeterians introduce the concept
of routines. What is suggested here is that the concepts of Degree of Rational Belief and
Weight of Argument, which come from the Keynes theory of probability, when used together
with the concept of routines, help understand the rationality of the decision-making process
in introduction of an innovation.

JEL Classification: O31.