iNM Volume 9 | Page 45

DISRUPTIVE INNOVATION PAGE 39 The idea of major innovations occurring every 50 odd years echoes Schumpeter s analysis of economic cycles He spoke of capitalism s history being punctuated by long and short waves of disruptions A long upswing is triggered when new technologies arrive ' . ' . . iNM VOLUME 9 Schumpeter s theory also creates a vicious cycle of its own destruction The entrepreneur brings along something new which becomes his or her source of profit Others join the market and profit gets distributed New investments come People speculate on the market and market booms But then all this has to evaporate eventually as everyone has most of the goods and there is demand now for replacement goods only ’ . . , . . . . From the steam engine to a search engine the capitalist economy is now all about innovation and creative destruction than ever before as exemplified by CDL Creative Destruction Lab in Rotman School of Management in Toronto Canada Had he been here today Schumpeter also known as the Prophet of Bust and Boom would have been delighted to see his theory standing even today , ( ) , . , , , .