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Theory vs School of Thought: Innovation

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What is Innovation?
Well, depend. There are two major school of thought of innovation, each from different perspective with each purpose.

A. Innovation is something new (creation process) – Orthodox School
Innovation is something new. According to Schumpeter (1912), innovation can be a new product, new process (technology), new markets, new organizations and new source. As something new, innovation require a process of communicating through channels over time among members of a social system (Rogers, 1962). More over innovation and technology often used as synonyms – which a technology is a design for instrumental action that reduces the uncertainty in the cause-effect relationships involved in
achieving a desired outcome (Rogers, 1962)

B. Innovation is something uncertain (evolutionary process) – Evolutionary Economic School
Innovation is uncertain (stochastic aspect) and factor of institutional complexity (Nelson & Winter, 1977). This school of thought is trying to makes “innovation” concept as something useful in the context of policy. So its higlight the innovation as search process, natural trajectories and technological regimes.

Why it should be two definition?
The orthodox theory, might not be effective in analyzing public related innovation e.g large scale renewable energy. However it might be effective for private sector innovation e.g iphone, android.

The evolutionary school is also has multiple interpretation from evolutionary economics, innovation economics, institutional economics to human geography and technology transitions.

Why we should learn evolutionary school?
Knowing that their biology counterpart where creation-evolution is a controversy topics, why we need to speak in this language -of course the definitive answer is Wittgenstein’s Limit of Language? but the reasons is that the majority is using this, the energy policy research using this framework.

Written by Anjar Priandoyo

Februari 18, 2016 pada 10:25 pm

Ditulis dalam Science

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