Technological change, culture, and a “social license to operate”

Technological change is disruptive, and in the long sweep of human history, that disruption is one of the fundamental sources of economic growth and what Deirdre McCloskey calls the Great Enrichment: In 1800 the average income per person…all over the planet was…an average of $3 a day. Imagine living in present-day Rio or Athens or … More Technological change, culture, and a “social license to operate”

The political economy of Uber’s multi-dimensional creative destruction

Over the past week it’s been hard to keep up with the news about Uber. Uber’s creative destruction is rapid, and occurring on multiple dimensions in different places. And while the focus right now is on Uber’s disruption in the shared transportation market, I suspect that more disruption will arise in other markets too. Start … More The political economy of Uber’s multi-dimensional creative destruction

Critiquing the theory of disruptive innovation

Jill Lepore, a professor of history at Harvard and writer for the New Yorker, has written a critique of Clayton Christensen’s theory of disruptive innovation that is worth thinking through. Christensen’s The Innovator’s Dilemma (the dilemma is for firms to continue making the same decisions that made them successful, which will lead to their downfall) … More Critiquing the theory of disruptive innovation

The peanut butter Pop-Tart is not an innovation

Today’s Wall Street Journal has an article about the use, overuse, and misuse of the word “innovation” in modern business, particularly with respect to consumer products. The number of instances of S&P 500 CEOs using the word in their earnings calls has doubled since 2007. Sadly, this misuse and overuse threatens to remove all meaning … More The peanut butter Pop-Tart is not an innovation

New Chicago mall and Schumpeterian disruptive innovation

Today a new mall is opening in Rosemont, near O’Hare Airport and the Rosemont Convention Center. The Fashion Outlets of Chicago will have a range of familiar factory outlet stores and restaurants, conveniently located near the airport and public transportation (I could even take the el there from KP Chicago HQ!). So what? According to its … More New Chicago mall and Schumpeterian disruptive innovation