Must-read: William Nordhaus: “Schumpeterian Profits in the American Economy: Theory and Measurement”
(2004): Schumpeterian Profits in the American Economy: Theory and Measurement: “Schumpeterian profits… arise when firms…
…appropriate the returns from innovative activity… We conclude that only a minuscule fraction of the social returns from technological advances over the 1948-2001 period was captured by producers, indicating that most of the benefits of technological change are passed on to consumers rather than captured by producers.