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On Strategy: Two Sides of Innovation

By Jack Mixner

Creativity - read that innovation - shows up in two interesting pieces. Florida's original book says creative and seemingly pampered people (my words) foster economic growth.

Hanson says that innovation comes from daily, tiny, incremental changes. He suggests that we do just fine at innovation. The problem, however, is that we cannot pick which innovations are important to real growth - nor what to do with them when we really find something truly innovative.

Strategic Implications

Hanson postulates that the next revolution - on the level of the industrial revolution - will be in smart machines, and that it will occur in the 21st century.

One response might be to suggest that everyone look for investments in smart machines.

Another response?

On a daily basis, stoke incremental change at your company using whatever means are available. However, take the time to look out over your industry for monumental change as it occurs. Daily? Probably not. Annually? At least.

References

Florida, Richard. The Rise of the Creative Class: How It's Transforming Work, Leisure, Community and Everyday Life. Basic Books. 2002.

Hanson, Robin. Reality and Fantasy in Economic Revolutions. http://www.cato-unbound.org/2006/06/06/robin-hanson/reality-and-fantasy-in-economic-revolutions/ . June 6, 2006.