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Gerhard KaeferWhy an Economic Crisis Could Be the Right Time for Companies to Engage in 'Disruptive Innovation' by Knowledge@Wharton, the online business journal of the Wharton School. Knowledge@Wharton covers research in Finance, Strategic Management, Marketing, Leadership, Business Ethics and 9 other knowledge research categories.
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07 Dec 08
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22 Nov 08
Thomas ChapinWhile "disruptive innovation" has enjoyed office buzz-phrase
status for only about a decade, the idea is quite old: Austrian economist Joseph Schumpeter had it in mind when he borrowed the phrase "creative destruction" to describe his theories of how entrepreneurs sustain the capitalist system. -
21 Nov 08
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Why an Economic Crisis Could Be the Right Time for Companies to Engage in 'Disruptive Innovation'
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18 Nov 08
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"Recent research suggests the stock market is not good at valuing intangibles, uncertain innovation or technological change," Benner says. "What this means for large, publicly traded firms is that they may face a disadvantage in engaging in radical innovation, and this innovation may instead take place in venture capital-funded startups."
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17 Nov 08
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The conventional wisdom might suggest that business, government and academia will be less willing to embrace the risk-taking and short-term costs that come with the territory of innovating.
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for some companies, the economic crisis can actually provide an innovation platform. "The crisis has multiple impacts," Schoemaker says. "Loss of revenue and profit will at first instill a cost cutting mentality, which is not good for innovation. But if the patient is bleeding you need to stop that first. Then, however, a phase starts where leaders ask which parts of their business model are weak (and perhaps unsustainable) and that, in turn, can lead to restructuring and reinvention."
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