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February 26, 2009 03:58 AM
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In a free market economy, when entities face challenges, they must think of ways to overcome them.
An obvious example of innovations resulting from disequilibrium would be the focus on alternative energy and energy efficiency. A large increase in demand for environmentally friendly products has caused innovation in everything from cars to appliances to alternative energy production.
Another more negative example is cigarette advertising. The government has passed many laws restricting tobacco advertising, putting companies in states of disequilibrium. The cigarette companies had to respond to this, which has forced them to create and adopt some of the most resourceful and devious advertising methods.
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Why does equilibrium limit innovation?
Higher levels of creative innovation and experimentation are found on the edge of chaos.
The challenge is to disturb them in a manner that approximates the desired outcome.
What types of innovations have resulted from disequlibrium in the last five years?
The challenge is to disturb them in a manner that approximates the desired outcome.
What types of innovations have resulted from disequlibrium in the last five years?
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| February 26, 2009 05:52 AM |
An obvious example of innovations resulting from disequilibrium would be the focus on alternative energy and energy efficiency. A large increase in demand for environmentally friendly products has caused innovation in everything from cars to appliances to alternative energy production.
Another more negative example is cigarette advertising. The government has passed many laws restricting tobacco advertising, putting companies in states of disequilibrium. The cigarette companies had to respond to this, which has forced them to create and adopt some of the most resourceful and devious advertising methods.
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