The practice of innovation

2003,3,11

The entrepreneurial economy

Managerial to entrepreneurial economy In 1965 to 1985 the workforce (age >=16)

grew from 129 to 180 million. But the job grew from 71 to 106 million. (through energy crises, near-collapse of the “smokestack” industries and of two sizable recessions.

IN 1970 to 1984, Western Europe LOST 3 to 4 million jobs.

In 1970, West Europe had 20 million more jobs than the united states

In 1984, West Europe had 10 million less jobs than the united states

In 1970 to 1982 the jobs in Japan grew a mere 10 percent.

Where the jobs come from?

From anywhere and no where; from no one single source.

High tech, low tech, no tech. Inc. (1982), one hundred fast-growing, public

owned American company more than five years and less than fifteen years old.

¼ are high tech, ¾ remains most “low tech”

Examples

Building contractor Manufacturer of physical exercise equipment

for the home Chain of barbershops Chain dentistry offices Manufacturer of hand tools Finance company

Management is the new technology that is making the American economy into an entrepreneurial economy.

history

Keynesian, to maximize the existing resources an aim at establishing equilibrium

Marx, the best historians of technology. Adam Smith, Say Joseph Schumpeter(1911) dynamic

disequilibrium brought on by innovating entrepreneur

There is no greater resource in an economy than “purchasing power”

Installment buying, truck (container), textbook,

four sources( within the enterprise, visible, already happen or can be made to happen with little effort)

The unexpected-the unexpected success, the unexpected failure, the unexpected outside event

The incongruity- between reality as it actually is and reality as it is assumed to be or as it “ ought to be”

Innovation based on process need Changes in industry structure or market structure

that catch everyone unawares

Three sources (changes outside)

Demographics (population change) Changes in perception, mood, and meaning New knowledge