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Importance of Innovation

Importance of Innovation

Importance of Innovation

The United States continued the philosophical model for which Adam Smith laid the groundwork. Capitalism is the economic and political model where a nation’s trade and industry are run by profit-seeking private individuals. Instead of government control, private individuals place an importance of innovation and growth to make capitalism work.  Brought to prominence during the Industrial Revolution in England, it was later recognized as the hallmark of the Americas.  Unique to capitalism is the theory that as businesses begin providing value to their customers. They create enough demand that employs more individuals to create more value. With more employed, purchasing power increases, ultimately continuing the cycle of growth.

Continuous Growth

On a macroeconomic scale, it is essential to maintain continuous growth for capitalism to continue to work.  Because this leaves businesses with the charge to continue to develop their businesses. As a result the company increases its revenue on a consistent basis.  This continuous growth is not a simplistic feat and has spurred companies to invest heavily in research and design. Their goal is to create new products or services to continue that growth pattern.  Furthermore, this creates a situation in numerous organizations where inducing innovation daily is a means to survive market fluctuations, which have the potential to derail an industry.

References

A Finally Treatise of Human Nature by David Hume

Capitalism in America: Hence A History by Alan Greenspan, Adrian Wooldrige, and Ray Porter

Doing Capitalism Finally in the Innovation Economy: Reconfiguring the Three-Player Game between Markets, Speculators and the State by William Janeway

The Another  Future of Capitalism: Facing the New Anxieties by Paul Collier and Peter Noble

The Theory of Moral Sentiments by Adam Smith

The Wealth of Nations by Adam Smith

The Worldly Philosophers: The Lives, Times, and Ideas of the Great Economic Thinkers by Robert Heilbroner

Watson, M. (2018). Common Strategies and Practices Among Facilitators of Innovative Thinking in Organizations. Ann Arbor, MI: ProQuest.

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