Innovation: Difference between revisions

In the 20th century, the concept of innovation did not become popular until after the Second World War of 1939-1945. This is the point in time when people started to talk about ''technological'' product innovation and tie it to the idea of economic growth and competitive advantage.<ref>{{Cite book| author1=Benoit Godin| title= The invention of technological innovation: languages, discourses and ideology in historical perspective| publisher=Edward Elgar Publishing| year=2019| isbn=9781789903348| oclc=1125747489}}</ref> [[Joseph Schumpeter]] (1883–1950), who contributed greatly to the study of [[innovation economics]], is seen as the one who made the term popular. Schumpeter argued that industries must incessantly revolutionize the economic structure from within, that is: innovate with better or more effective processes and products, as well as with market distribution (such as the transition from the craft shop to factory). He famously asserted that "[[creative destruction]] is the essential fact about [[capitalism]]".<ref name="capsocdem">{{cite book |author=Schumpeter, J. A. |title=Capitalism, Socialism, and Democracy |publisher=Routledge |year=1943 |isbn=9780415107624 |edition=6 |pages=81–84 |author-link=Joseph Schumpeter}}</ref> In [[commerce |business]] and in [[economics]], innovation can provide a catalyst for growth when [[entrepreneur]]s continuously search for better ways to satisfy their [[consumerConsumer demand| consumer base]] with improved quality, durability, service and price - searches which may come to fruition in innovation with advanced technologies and organizational strategies.<ref>Heyne, P., Boettke, P. J., and Prychitko, D. L. (2010). ''The Economic Way of Thinking''. Prentice Hall, 12th ed. pp. 163, 317–18.</ref> Schumpeter's findings coincided with rapid advances in [[transportation]] and [[communications]] in the beginning of the 20th century, which had huge impacts for the economic concepts of [[factor endowment]]s and [[comparative advantage]] as new combinations of resources or production techniques constantly transform markets to satisfy consumer needs. Hence, innovative behaviour becomes relevant for economic success.<ref>{{Citation |last=Swedberg |first=Richard |title=Rebuilding Schumpeter's Theory of Entrepreneurship |date=2009-01-30 |url=http://dx.doi.org/10.4337/9781848446168.00018 |work=Marshall and Schumpeter on Evolution |access-date=2023-12-25 |publisher=Edward Elgar Publishing |doi=10.4337/9781848446168.00018 |isbn=978-1-84844-616-8}}</ref>

Some [[regions]] have taken a proactive role in supporting innovation. Many regional governments are setting up innovation agencies to strengthen regional capabilities.<ref>Morisson, A. & Doussineau, M. (2019). Regional innovation governance and place-based policies: design, implementation and implications. Regional Studies, Regional Science,6(1),101–116. https://rsa.tandfonline.com/doi/full/10.1080/21681376.2019.1578257.</ref> [[Business incubator]]s were first introduced in 1959 and subsequently nurtured by governments around the world. Such "incubators", located close to knowledge clusters (mostly research-based) like universities or other government [[Center of excellence | excellence centre]]s – aim primarily to channel generated knowledge to applied innovation outcomes in order to stimulate regional or national [[economic growth]].<ref>

Innovation in the prevailing hegemonic view today mostly refers to 'innovation under capital',<ref name=":5" />, due to the prevailing capitalist nature of the global economy. In contrast, Robra et al. (2023) propose a counter-hegemonic view on innovation.<ref name=":6" /> This alternative lens revises the centrality of capital accumulation as the primary goal of innovation. Instead of being solely driven by profit motives, a counter-hegemonic understanding sees innovation as a means to create [[Use value|user-value]], with a focus on satisfying societal needs. This view on innovation is underpinned by [[open access]] to knowledge, adaptability, repairability, and maintenance of products as well as [[Eco-sufficiency]], defining progress not by efficiency but by staying within planetary boundaries, thereby challenging the hegemonic belief in [[The Limits to Growth|limitless growth]]. This perspective is exemplified by [[Commons-based peer production|commons-based peer production (CBPP)]], offering an alternative vision of innovation that prioritizes conviviality over relentless competition. In essence, this counter-hegemonic view describes a more socially and ecologically conscious approach to innovation, striving for a balance between technological progress and human wellbeing.