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Vaknin, Sam, 1961-

"Capitalistic Musings"

"
The much quoted Austrian economist, Joseph Schumpeter coined the phrase
"creative destruction". Together with its twin - "disruptive
technologies" - it came to be the mantra of the now defunct "New
Economy".
Schumpeter seemed to have captured the unsettling nature of innovation
- unpredictable, unknown, unruly, troublesome, and ominous. Innovation
often changes the inner dynamics of organizations and their internal
power structure. It poses new demands on scarce resources.
It provokes resistance and unrest. If mismanaged - it can spell doom
rather than boom.
Satkar Gidda, Sales and Marketing Director for SiebertHead, a large UK
packaging design house, was quoted in "The Financial Times" last week
as saying:
"Every new product or pack concept is researched to death nowadays -
and many great ideas are thrown out simply because a group of consumers
is suspicious of anything that sounds new ... Conservatism among the
buying public, twinned with a generation of marketing directors who
won't take a chance on something that breaks new ground, is leading to
super-markets and car showrooms full of me-too products, line
extensions and minor product tweaks."
Yet, the truth is that no one knows why people innovate.


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