• Schumpeter
• evolutionary economics
• income inequality
• innovation

Innovation is the engine of capitalism, and capitalism has evolved since the Industrial Revolution. In this thesis we try to understand how the evolution of capitalism has shaped the way in which the income generated is distributed among its people. We look at the western world through the lens of Joseph Alois Schumpeter, trying to understand the function of the capitalist engine, then try to describe and understand the increase in income inequalities over the last centuries, with a tentative of explaining them as an inevitable fruit of the economic system. Why run OLS regressions to see whether income inequality correlated to innovation in EU-27.