Clayton Christensen, On The Entrepreneurial Innovations Our Economy Needs


Dr. Clayton Christensen is the author of How Will You Measure Your Life? (Photo courtesy of Evgenia Eliseeva)
How can we, as entrepreneurs, do a better job of creating more jobs?
As I’ve written about recently in the New York Times and discussed in How Will You Measure Your Life?, there are three kinds of innovations. The first are “Empowering” innovations that transform expensive products into affordable ones that many more people can buy. These are innovations that create new jobs – millions of new jobs – that go unfilled because people don’t yet have the skills to fulfill them. “Sustaining” innovations are the ones that replace old products with newer models. “Efficiency” innovations – the ones most common in our current economy – are the ones that reduce or simplify the processes in the creation and delivery of an existing service or product. Efficiency innovations are a natural part of the economic cycle, but these are the innovations that streamline process and actually reduce the number of available jobs.
So if empowering innovations are the ones with dramatic ability to create new jobs, why are we not creating more of them?
In our traditional economic cycles, all three kinds of innovations occurred within a natural and repeatable sequence. Our current economy, however, has gone off of the rails in large part because we are focused almost entirely on efficiency innovations—on streamlining and wringing bottom line savings and additional profits out of our existing organizations. We are missing out on the opportunity to open up new markets where great empowering innovations and extraordinary new profit and job creation can occur.

Contributor: Alan Hall
Source and read more:
http://www.forbes.com/sites/alanhall/2012/12/11/clayton-christensen-on-the-entrepreneurial-solutions-our-economy-needs/

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