Edith Penrose’s Legacy: Shaping Economics, Management, and Political Economy

Edith Penrose is best known for The Theory of the Growth of the Firm, originally published in 1959, but she made major contributions in other fields, including patents, the oil industry, and development economics. This book explores her work and legacy, not just on economics – she was the founding Head of Department of Economics at SOAS University of London - but also on the related fields of management and political economy where her contribution has had significant impact.

Penrose challenged the conventional wisdom of economics by opening up the ‘black box’ view of the firm to explore what goes on inside, in particular how resources are managed and renewed to influence growth and innovation. Her analysis was cognisant of the wider political economy context in which firms operate, recognising the different impact of large international firms on developing and developed countries. Penrose’s work has shaped modern theories of strategic management including the resource-based view of the firm and the dynamic capabilities approach.

The chapters in this volume, from leading economists and management scholars, cover a range of topics including innovation, collaboration between firms and universities, and the practice and consequences of share buy-backs, highlighting the value of a Penrosian perspective and the extent of her legacy. This book will be relevant to students and scholars of economics, management, and political economy.

This book was originally published as a special issue of International Review of Applied Economics.

Jonathan Michie is Professor of Innovation and Knowledge Exchange at the University of Oxford, where he is also Pro-Vice-Chancellor and President of Kellogg College. He is the managing editor of the International Review of Applied Economics, and Chair of the Universities Association for Lifelong Learning.

Christine Oughton is Professor of Management Economics at SOAS University of London. Her research focuses on innovation, environmental management & economics, corporate governance, financial inclusion and growth. She has published widely on innovation, environmental management & economics, governance and growth.