Money  /  Book Excerpt

The Innovation Cult

The function of the "innovation" buzzword is to sustain the myth that business genius creates society’s wealth.
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The value of innovation is so widespread and so seemingly self-evident that questioning it might seem bizarre — like criticizing beauty, science, or penicillin, things that are, like innovation, treated as either abstract human values or socially useful things we can scarcely imagine doing without. And certainly, many things called innovations are, in fact, innovative in the strict sense: original processes or products that satisfy some human need.

A scholar can uncover archival evidence that transforms how we understand the meaning of a historical event; an automotive engineer can develop new industrial processes to make a car lighter; a corporate executive can extract additional value from his employees by automating production. These are all new ways of doing something, but they are very different somethings. Some require a combination of dogged persistence and interpretive imagination; others make use of mathematical and technical expertise; others, organizational vision and practical ruthlessness.

But innovation as it is used most often today comes with an implied sense of benevolence; we rarely talk of innovative credit-default swaps or innovative chemical weapons, but innovations they plainly are. The destructive skepticism of the false-prophet innovator has been redeemed as the profit-making insight of the technological visionary.

Innovation is most popular today as a stand-alone concept, a kind of managerial spirit that permeates nearly every institutional setting, from nonprofits and newspapers to schools and children’s toys. The Oxford English Dictionary (OED) defines innovation as “the alteration of what is established by the introduction of new elements or forms.” The earliest example the dictionary gives dates from the mid-sixteenth century; the adjectival “innovative,” meanwhile, was virtually unknown before the 1960s, but has exploded in popularity since.

The verb “to innovate” has also seen a resurgence in recent years. The verb’s intransitive meaning is “to bring in or introduce novelties; to make changes in something established; to introduce innovations.” Its earlier transitive meaning, “To change (a thing) into something new; to alter; to renew” is considered obsolete by the OED, but this meaning has seen something of a revival. This was the active meaning associated with conspirators and heretics, who were innovating the word of God or innovating government, in the sense of undermining or overthrowing each.