Posts tagged with: innovation

As leaders of HOPE International, an organization that empowers men and women across the globe through business training, savings services, and small loans, Peter Greer and Chris Horst have witnessed the transformative impact entrepreneurship can have on individuals and communities, particularly when paired with the power of the Gospel.

In Entrepreneurship for Human Flourishing, a new book for AEI’s Values and Capitalism project, they explore this reality at length, offering compelling stories of businesspeople that illustrate the profound importance of free enterprise and entrepreneurship in equipping the poor and empowering the marginalized.

Watch the trailer for the book here:

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800px-Hartmann_Maschinenhalle_1868_(01)In a marvelous speech on the origins of economic freedom (and its subsequent fruits), Deirdre McCloskey aptly crystallizes the deeper implications of her work on bourgeois virtues and bourgeois dignity.

For example, though many doubted that those in once-socialistic India would come to see markets favorably, eventually those attitudes changed, and with it came prosperity. As McCloskey explains:

The leading Bollywood films changed their heroes from the 1950s to the 1980s from bureaucrats to businesspeople, and their villains from factory owners to policemen, in parallel with a similar shift in the ratio of praise for market-tested improvement and supply in the editorial pages of The Times of India… Did the change from hatred to admiration of market-tested improvement and supply make possible the Singh Reforms after 1991? Without some change in ideology Singh would not in a democracy have been able to liberalize the Indian economy…

…After 1991 and Singh much of the culture didn’t change, and probably won’t change much in future. Economic growth does not need to make people European. Unlike the British, Indians in 2030 will probably still give offerings to Lakshmi and the  son of Gauri, as they did in 1947 and 1991. Unlike the Germans, they will still play cricket, rather well. So it’s not deep “culture.” It’s sociology, rhetoric, ethics, how people talk about each other. (more…)

Mike Mulligan and His Steam Shovel, Virginia Lee BurtonCreative destruction can be a painful thing, particularly when you’re the one being destroyed. I’ve been-there done-that, and when things hit, I can’t say that I cared too much about Joseph Schumpeter and his fancy ideas.

Alas, even when we have a firm understanding of the long-term social and economic benefits of such destruction — that whatever pain we’re experiencing is for the “greater good” of humanity — we can’t help but feel unappreciated, devalued, and cast aside. Our work is an expression of ourselves, something we offer to society and (hopefully) believe to be of considerable worth.

Thus, when we experience such rejection, it’s only natural to react bitterly and become cynical, resentful, or fatalistic, allowing our attitudes and behaviors to correspond in turn. We’re tempted to doubt ourselves or doubt others, to sit back or plod forward halfheartedly, to feel entitled, believing that our “service” deserves a place in the economic landscape, regardless of what the economic signals might say.

Yet amidst theese competing emotions, we mustn’t forget that, in addition to concerns about productivity, efficiency, and economic progress, for the Christian, our work is ultimately service to others, and thus, to God. If someone has discovered new and better ways to meet our neighbors’ needs, it should tell us that it’s time to tweak our game and find new ways to contribute, as hard and uncomfortable as that may be. Our work is not a mere means to a paycheck, and neither are we mindless, powerless cogs in some grand machine, manufactured and predestined to spin mindlessly along only to be bypassed by the Next Big Thing and consigned to the city dump.

In her 1939 children’s book, Mike Mulligan and His Steam Shovel, Virginia Lee Burton gets to the heart of all this, tapping into the deep and profound pain of creative destruction, while ultimately pointing the way forward — toward creativity, service, and authentic human flourishing. (more…)

american heroIn a fascinating essay in Mosaic, Charles Murray examines the spirit of innovation in America. He asks,

As against pivotal moments in the story of human accomplishment, does today’s America, for instance, look more like Britain blooming at the end of the 18th century or like France fading at the end of the 19th century? If the latter, are there idiosyncratic features of the American situation that can override what seem to be longer-run tendencies?

The author of Human Accomplishment: The Pursuit of Excellence in the Arts and Sciences, Murray amassed data from virtually all of human history, across cultures and in vast categories of human endeavor. He believes that there are patterns to innovation, creativity and advancement, and that certain cultural standards support and encourage this, while others degrade it. Murray makes the case that America is floundering, if not fading, when it comes to innovation and invention. (more…)

Blog author: jcarter
posted by on Monday, March 3, 2014

“Most CEOs now spray the word ‘innovation’ as if it were an air freshener,” says Dennis Berman in the Wall Street Journal, “A little spritz can’t hurt.” A prime example, notes Berman, is what Kellogg’s CEO John Bryant described as one of their company’s most important “innovations”: a peanut butter Pop-Tart.

Most of us would probably agree that a new flavor of breakfast pastry isn’t as innovative as, say, the iPhone. But how do we know? What exactly is innovation?

As David Brier explains, innovation is about “seeing and connecting the dots.”

Blog author: jsunde
posted by on Tuesday, December 31, 2013

????????????????????????????????????In a recent piece for the Wall Street Journal, Emory economics professor Paul H. Rubin makes an interesting argument about the way economists tend to over-elevate and/or misconstrue the role of competition in the flourishing of markets.

“Competition plays a supporting role,” he argues, but “cooperation makes markets thrive”:

The way we use the term competition instead of cooperation fosters anti-market bias. “Competition” carries a negative connotation because it implies winners and losers, and our minds naturally feel sympathy for the losers. But cooperation evokes a positive response: It’s a win-win situation with no losers. And in fact the word competition doesn’t depict market activity as aptly as the word cooperation. The “competitive economy” would be better described as the “cooperative economy.”

Consider the most basic economic unit, the transaction. A transaction is cooperative because both parties gain from a voluntary exchange. There is competition in markets, but it’s actually competition for the right to cooperate. Firms must compete for the privilege of selling to consumers—for the right to cooperate with consumers. Workers compete for the right to cooperate with employers. Competition matters because it ensures that the most efficient players will gain the right to cooperate on the best terms available. But competition plays a supporting role, while cooperation makes markets thrive. (more…)

This is a guest post by Michael Hendrix, following up on his previous post on the economic challenges of millennials, and my own post on the deeper vocational questions that persist for Christians. Michael serves as the director for emerging issues and research at the U.S. Chamber of Commerce in Washington, D.C. He is a graduate of the University of St. Andrews and a Texas native.

By Michael Hendrix

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Twenty years from now, we will see an America where merit and reward are intertwined more than ever before. As I’ve written recently, those who win the future will significantly outpace their peers, leaving the rest to fight over the scraps until organizational innovations and human capital catches up once again.

If true, such a reality must be reckoned with. So what about those left behind? What will their futures look like? With decreases in gainful employment and the increasing disconnect between vocational aspirations and actual occupations, what other risks persist — economic, social, spiritual, and otherwise? Assuming we are not comfortable with such a future, what should we do about it?
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James Pethokoukis of AEI says that this is the most important economic chart in Western civilization. I completely agree.

042313growth

The concept is so important that no student should receive a passing grade in any economics class—whether in high school or college—unless they can explain why economic growth matters (ideally, every educated Christian would be able to do so too since it has theological implications).

Yet, sadly, few Americans recognize its importance despite the fact, as Pethokoukis notes, that in real terms, the average income of Americans over the past two centuries went from $2,000 per person to $50,000. Pethokoukis credits the change to a shift in thinking: Respect and reward innovators and innovation. He includes a great quote by Deirdre McCloskey on how the West became a business-admiring civilization:

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In the video below, Ralph Baer, the “father of video games,” explains why he still invents at 90 years old. “What do you expect me to do?” he asks. He likens invention to the work of a painter. Would someone ask why a painter doesn’t retire? It’s what they love to do! Indeed, it is a calling.

In The Entrepreneurial Vocation, Fr. Robert Sirico writes,

Entrepreneurs, as agents of change, encourage the economy to adjust to population increases, resource shifts, and changes in consumer needs and desires. Without entrepreneurs, we would face a static economic world not unlike the stagnant economic swamps that socialism brought about in central Europe.

The same can be said about inventors like Baer as well. Like them or not, video games have been a huge source of wealth creation in our country over the last 40 years. Not only are whole teams of programmers required to create a single game, but modern games even employ actors, composers, writers, artists, and so on. In many ways they are (or at least could be) the culmination of culture up to our present time, and it all started because Baer invented a fun little gadget and managed to market it some 40 years ago.

I remember as a child of the ’80s, we actually had a Magnavox Odyssey 2 growing up. A child today would likely find it bizarre that I could find any enjoyment from such primitive sound, graphics, and interface, but it will always hold a special place in my heart. Yes, looking at it now, I can vividly remember the feel of the controller in my hand, the excitement of a child in wonder at what, at the time, was such amazing technology and a source of fun and competition with my brothers. It may not be impressive to many today, but inventions like this and the people who invent them ought to bring us to awe before the God who created heaven and earth and such fascinating and creative creatures as the human race, capable of wondrous invention after the image of the God who created them so fearfully and wonderfully unique.

Blog author: jcarter
posted by on Friday, February 22, 2013

Innovation is an ethical matter through and through, says Chris MacDonald, because ethics is fundamentally concerned with anything that can promote or hinder human wellbeing.

Innovation is generally a good thing, ethically, because it is aimed at allowing us to do new and desirable things. Most typically, that gets expressed in the painfully vague ambition to ‘raise productivity.’ Accelerating our rate of innovation is a worthy policy objective because we want to be more productive as a society, to increase our social ‘wealth’ in the broadest sense. The 20th Century has seen a phenomenal burst of innovation and increases in wellbeing, exemplified not least by the fact that life expectancies in North American have risen by more than half over the last hundred years. The extension and enriching of human lives are good goals, which in turn makes innovation generally a good thing.

Indeed, when looked at that way, innovation isn’t just a ‘good,’ but a downright moral obligation. Yes, lives for (most) people in developed countries are pretty good. But many still don’t have happy and fulfilling lives; many children, even here, still go to bed hungry. Boosting productivity through innovation is a key ingredient for making progress in that regard. And if less developed nations are going to be raised up to even a minimally tolerable standard of living, we need innovations that will help them, and we need innovations that will make us wealthy enough that we can afford to be substantially more generous toward them than we currently are.

Read more . . .