Fostering Sustainable Innovation Through Creative Destruction Theory
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Fostering Sustainable Innovation Through Creative Destruction Theory Emerson Abraham Jackson Centre of West African Studies, University of Birmingham, Birmingham, UK Model Building Analysis Section, Research Department, Bank of Sierra Leone, Freetown, Sierra Leone Disclaimer The views expressed in this chapter are those of the author(s) and do not reflect any of the named institutions for which they are associated.
Synonyms Modernization; Transmutation; Technological revolution
In the current era of technological transformation, innovation can be thought of as the mastermind behind the growth of businesses, particularly when the focus is geared towards maximizing profits in the midst of fierce competition (ArqueCastells and Spulber 2019; Carayannis et al. 2019; Schumpeter 1942). Innovation gives rise to a situation where obsolete or existing means of production are almost forced to become obsolete on the basis of creativity in human ingenuity, which is due to continuous advancement in research and development (R&D) championed by entrepreneurs. Linked with the theory of creative destruction as coined by the Austrian economist, Joseph Schumpeter in 1942, the process of innovation normally results in the “birth and death of ideas” but with the former taking lead role in transforming the world as creative ideas continue to manifest itself in the world economy. Such approach to creative destruction is perceived as a necessary evil, given the scope it generates through nurturing of human creativity to cater for a rising global population, saturated by their insatiable needs (Kopp 2019).
Definition • In view of addressing the focus of this chapter, the conceptual definition of the term innovation as provided in the Business Dictionary (Online) “is the process of translating an idea or invention into a good or service that creates value for which customers will pay.”
Introduction The current information age is modeled on the advancement of innovative mindset of creative thinkers, championed through means associated with transformative technologies associated with
© Springer Nature Switzerland AG 2020 W. Leal Filho et al. (eds.), Industry, Innovation and Infrastructure, Encyclopedia of the UN Sustainable Development Goals, https://doi.org/10.1007/978-3-319-71059-4_119-1
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Fostering Sustainable Innovation Through Creative Destruction Theory
events like high-speed Internet and payment system, which makes it possible for transactions to be dealt with almost instantaneously. Such developments are essentially vital, given its prospect for growth rate and dynamism in the world population and also the need to ensure living conditions are adequately satisfied, particularly in the direction of the Sustainable Development Goals (SDG) earmarked for full implementation in the year 2030. The concept of innovation is widely used in all walks of life – the effort of Schumpeter’s paradoxical term, “creative destruction,” became highly prominent in the 1950s, which many economists in recent time have endeavored linked it with free marke
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