Long-term Innovation
Introduction
This lecture introduced the topic of the stagnation in development that started in the 1970s. Hall's book, “Where is my Flying Car” along with this lecture, analyzes the reasons behind the abrupt stop in innovation and economic development after the creation of many technological advancements at the time. Innovation and creation is super important and we can see that throughout the world today. There are obviously right and wrong ways to innovate within a country and as the leaders in your country, it is important to distinguish the right ways to innovate. As an abundant country, we need to continue to develop economically the right way because of the growth, productivity, competitive advantage, and overall sustainability we will maintain as a country.
Right Ways to Innovate
Regardless of the state of your country, you should always strive for economic development. This applies to bigger countries like the United States, and even smaller, developing countries like those in Africa. I believe that innovation is the driver for progress and success because without innovation, businesses risk being stagnant and losing their competitiveness with other companies. Innovation is also important from an ethical standpoint, because if you are not considering ethical implications, it will not be as successful as you want it to be. Some right ways to innovate include encouraging cultural innovation, collaborating with others by asking questions and considering others’ opinions, embracing openness, and making ethical decisions. When applying these principles to the United States in the 1970s, there were a lot of positives with the way that innovation was advancing. There were entrepreneurs unafraid of failing and cultural innovations with new technologies. The United States developed the right way, but not for a long time. Unethical decisions, close-mindedness, and fear is what caused the economic development stagnation.
Wrong Ways to Innovate
Innovation can impact a country in a positive way, but has to be carefully considered and thought out to work correctly. Though the 1970s had a ton of technological advancements, inflation was continuing to increase and leaders were not doing anything about it. As an entrepreneur, you are already starting out with close to nothing, and if I was an entrepreneur at this time, I would struggle with creativity and creation because it would be impossible to pay for the startup in the first place. I believe The United States was struggling with high prices because of the lack of ethical decisions being made and lack of accountability by people in high government positions. Fear was a big factor also in the lack of innovation. Government was afraid of losing their power and entrepreneurs were also afraid of failing and didn’t want to ruin their reputation. This reveals the lack of trust citizens had with the government at the time. Without that healthy relationship between regulators and entrepreneurs, it becomes hard to want to innovate and create.
A New Economic System?
Capitalism in the United States has advanced technology and encouraged innovation, but it has come to a halt. In my opinion, I think Capitalism has made major progress for the US, but for us to continue making ground-breaking discoveries, there has to be a new system for development. I think this new system has to consider and encourage the distribution of equality in wealth and power. One that considers both the rich and poor on the same level, so that technological advancements can better cater to human needs. This can include community-based solutions, seeing businesses as benefiting the community for the good, measuring success by community standards and capital (socially, culturally, and physically). Part of America’s problem is that bureaucracies tend to be hostile to encouraging creative thinking, and instead hold back technological advancements. So leaders need to be asking the question, what are ethical implications of new systems that encourage the technological development of human needs? We will never know the technological future of our society without trying new ways to innovate.
Conclusion
Overall, The United States has economically developed dramatically since the 1950s, but has not exceeded expectations for the 21st century. Many people assumed we would be way further along than we are right now with technology. The US has been stagnant in technological development because of the lack of risk-taking leaders and keeping the same leadership tactics that have been in place forever. If we want technological advancements that will continue to cater to our needs, I believe we need a new economic system that encourages this type of innovation. As a country, we need to define what this means, and how we can implement this new system ethically and effectively.