Why an Economic Crisis Could Be the Right Time for Companies to Engage in ‘Disruptive Innovation’

If you didn’t have time to read the 600 page report from the National Academy of Science titled “Rising Above the Gathering Storm” this great article from the Knowledge @ Wharton webiste is a great summary of how the economic turmoil taking place around the Globe could be a boon for creative destruction.

The article starts off by stating that US dominance isn’t just slipping in manufacturing, energy and finance…it is slipping in “Good old American Ingenuity”.  I’d argue that here in Canada this slide isn’t as significant, but you can’t argue with the fact that China, Singapore and Finland are blowing us out of the water when it comes to fostering innovation within their borders.

The good news, as this article postulates, is that companies in North America will be forced to re-evaluate their business plans in order to first “stop the bleeding” and then begin the process of re-alignment.  This will provide a platform where innovation can thrive.

The article moves on to discuss some of the ways companies can take advantage of this opportunity…my personal favorite is the analogy of innovating to firing a shotgun, not a rifle.  Since we’re talking innovation, what about microwaves or laser beams?