Innovation Theory Of Creative Destruction - 1413 Words

The concept of innovation varies greatly on the point of view of the philosopher. Based on this idea of innovation, the understanding of what it means to create a new idea also transforms. However, in terms of dealing with people the perspectives may vary, but generally the struggles of innovation stem from similar ideologies. These thoughts ring true for Schumpeter and Kracauer in their very different concepts of innovation. Schumpeter, overarching concept of innovation centers around his theory of creative destruction, whereas Kracauer focuses on the power of boredom. For Schumpeter, innovation means completely restructuring desire of the individual. This does not mean reshaping, but rather revolutionizing what the consumer wants and†¦show more content†¦Innovation never ceases, it is a never ending process of change. To create a new idea involves developing something that completely transforms the status quo. Schumpeter coined the term, industrial mutation, or something, â€Å"that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in.† (Schumpeter, The Process of Creative Destruction, 83). In a capitalist society, as referenced in creative destruction, the creation of a new idea often means the destruction of and/or the replacement of a pre-existing belief, product, or understanding. Sometimes this is completely beneficial to all of society, but more often than not, there is some detriment, or the detriment of some. This group is usually those already marginalized most by the current system. In terms of Schumpeterian innovation, there are multiple obstacles or sources of resistance that have to be overcome. First off, there is whatever is being destroyed in the creative destruction. Take Uber for example. In an instant this startup company revolutionized the way that people look at transportation. People had never considered the ease and brilliance of an app that allowed you to summon a taxi in minutes. However, with this came a huge decline of the taxi industry: theyShow MoreRelatedSocial Media And Its Impact On Business Management1268 Words   |  6 PagesFor decades now Silicon Valley has been the capital for major US technology firms and has become a thriving ecosystem for innovation. Household names in tech ranging from Apple to WhatsApp continue to drive innovations that improve or replace today’s major industries and business practices. 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