Fostering Sustainable Innovation Through Creative Destruction Theory

Abstract

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 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." 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 (Arque-Castells 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).

Import Substitution Industrialization (ISI): An Approach to Global Economic Sustainability

“…As emphasised by Ogujiuba et al (2011), differences were more in the management of rent-seeking opportunities created by governments in these African economies to promote and protect industrial growth and development. The continued growth and profits from rent-seeking investments devoted by governments in the Asian tiger economies were seen to be more in line with Schumpeter's creative destruction concept, geared towards motivating productive entrepreneurship (Jackson, 2020a). Whereas, in Sub-Saharan Africa, profits were seen to be static despite the pleasure of rent-seeking received from governments.…”

Import Substitution Industrialization (ISI): An Approach to Global Economic Sustainability

“…As emphasized by Ogujiuba et al (2011), differences were more in the management of rent-seeking opportunities created by governments in these African economies to promote and protect industrial growth and development. The continued growth and profits from rent-seeking investments devoted by governments in the Asian Tiger economies were seen to be more in line with Schumpeter's creative destruction concept, geared toward motivating productive entrepreneurship (Jackson 2020b). Whereas in sub-Saharan Africa, profits were seen to be static despite the pleasure of rent-seeking received from governments.…”

Sustainable Livelihood Framework for Equitable Living in Crisis of a Global Pandemic

“…In the current age of technology, there is high demand placed on Research and Development (R&D) to support human innovation at the highest level. Governments across the world economy must also endeavour to champion the way forward in ensuring human skills are harnessed in the best possible way that support creativity, more so in dealing with varied types of shocks (Jackson 2020b). Such an approach could be seen through the lenses of Schumpeter's Creative-Destruction concept in a bid to ensuring human creativity is robustly explored to support the most vulnerable.…”

“…In order to ensure equality of educational provision is made accessible to all, educational institutions (including schools and universities) in developed economies opted to delivering lessons and exams via dedicated online learning platforms, which is well in supports of the SDG5 agenda. One would be very much inclined to question the efficacy of the approach, but in reality, given the prevailing circumstances of restricted access in public places, the idea of Schumpeter's Creative-destruction theory is sure to take centre stage in diluting the adverse impact of COVID-19 pandemic (Jackson, 2020b).…”