The dynamics of Silicon Valley: Creative destruction and the evolution of the innovation habitat

2013 ◽  
Vol 52 (4) ◽  
pp. 539-557 ◽  
Author(s):  
Doug Henton ◽  
Kim Held
Keyword(s):  
New Technologies ◽  
Social Innovation ◽  
Service Providers ◽  
Silicon Valley ◽  
Creative Destruction ◽  
Lessons Learned ◽  
Venture Capitalists ◽  
Institutional Infrastructure ◽  
Boom And Bust ◽  
The Impact

Understanding the dynamics of Silicon Valley requires a deep appreciation of the impact of creative destruction on a resilient innovation habitat: a complex ecosystem of relationships among entrepreneurs, researchers, venture capitalists, service providers, lawyers, accountants and marketing professionals that is constantly shape-shifting. As a modern Proteus, Silicon Valley has initiated and weathered successive boom–bust cycles by constantly adapting its social and institutional infrastructure to new technologies and market forces, and leveraging these foundations in the next wave. Joseph Schumpeter, who is credited with the notion of ‘creative destruction’, saw capitalism as a ‘process of industrial mutation … that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one’ (Schumpeter, 1942: 83). For over half a century, Silicon Valley has been a model for continual creative destruction. Carlota Perez has taken Schumpeter’s theory to the next level by demonstrating how technological revolutions driven by creative destruction result in not only redefined industries but also redefined industrial infrastructures and economic institutions (Perez, 2002). This article provides a framework for analyzing the dynamics of Silicon Valley based on the perspectives of both Schumpeter and Perez, and describes how the region continues to evolve as a social innovation habitat that supports the diversity of changing technologies and converging industry clusters. Whether this can be replicated by other economic regions is discussed, with key lessons learned from the Silicon Valley experience and how they might be applied to other places. We argue that regions must accept creative destruction as a natural process of boom and bust, and adapt and apply technologies during these cycles that are important and vital to the specific region. Each region does not have to strive to be Silicon Valley, but instead should build on its strengths and invest in innovation infrastructure and human capital in order to become its own Silicon Valley.

scholarly journals Translator Education at a Crossroads:the Impact of Automation

2019 ◽  
Vol 64 (1) ◽  
pp. 103-121 ◽  
Author(s):  
Begoña Rodríguez de Céspedes
Keyword(s):  
Machine Translation ◽  
New Technologies ◽  
Service Providers ◽  
Computer Assisted ◽  
Daily Lives ◽  
Translation Tools ◽  
Technological Competence ◽  
The Future ◽  
The Impact ◽  
Translator Education

Abstract Automation is affecting all spheres of our daily lives and humans are adapting both to the challenges that it poses and the benefits that it brings. The translation profession has also experienced the impact of new technologies with Language Service Providers adapting to changes (Presas/Cid-Leal/Torres-Hostench 2016; Sakamoto/Rodríguez de Céspedes/Evans/Berthaud 2017). Translation trainers are not oblivious to this phenomenon. There have indeed been efforts to incorporate the teaching of digital translation tools and new technologies in the translation classroom (Doherty/Kenny/Way 2012; Doherty/Moorkens 2013; Austermühl 2013; O’Hagan 2013; Gaspari/Almaghout/Doherty 2015; Moorkens 2017) and many translation programmes in Europe are adapting their curricula to incorporate this necessary technological competence (Rothwell/Svoboda 2017). This paper reflects on the impact that automation and, more specifically machine translation and computer assisted tools, have and will have on the future training of translators and on the balance given by translation companies to language and technological skills.

scholarly journals Has Creative Destruction become more Destructive?

2016 ◽  
Vol 16 (4) ◽  
Author(s):  
John Komlos
Keyword(s):  
Public Choice ◽  
New Technologies ◽  
Value Added ◽  
Economic Cost ◽  
Creative Destruction ◽  
Capitalist Development ◽  
Economic Progress ◽  
The Impact ◽  
Net Value Added ◽  
Industrial Revolutions

Abstract: Schumpeter’s concept of creative destruction as the engine of capitalist development is well-known. However, that the destructive part of creative destruction is a social and economic cost and therefore biases our estimate of the impact of the innovation on GDP is hardly acknowledged, with the notable exception of Witt (1996. “Innovations, Externalities and the Problem of Economic Progress.” Public Choice 89:113–30). Admittedly, during the First and Second Industrial Revolutions the magnitude of the destructive component of innovation was no doubt small compared to the net value added to GDP. However, we conjecture that recently the destructive component of innovations has increased relative to the size of the creative component as the new technologies are often creating products which are close substitutes for the ones they replace whose value depreciates substantially in the process of destruction. Consequently, the contribution of recent innovations to GDP is likely upwardly biased. This note calls for further research in innovation economics in order to measure and decompose the effects of innovations into their creative and destructive components in order to provide improved estimates of their contribution to GDP and to employment.

scholarly journals Barriers to Participatory eRulemaking Platform Adoption: Lessons Learned from RegulationRoom

2018 ◽  
Author(s):  
Mary Newhart ◽  
Joshua Brooks
Keyword(s):  
Public Participation ◽  
New Technologies ◽  
Lessons Learned ◽  
Electronic Government ◽  
Democratic Legitimacy ◽  
Policy Outcomes ◽  
For Profit ◽  
Agency Risk ◽  
Formal Requirements ◽  
The Impact

Cornell e-Rulemaking Initiative Publications. 19. Rulemaking, the process through which United States (U.S.) federal government agencies develop major health, safety and economic regulations, was an early target of electronic government (e-government) efforts. Because it was an established decision-making process that had substantial formal requirements of transparency, public participation and responsiveness it seemed a perfect target for technology-supported participatory policymaking. It was believed that new technologies could transform rulemaking, increasing its democratic legitimacy and improving its policy outcomes by broadening the range of participating individuals and groups (Brandon and Carlitz, 2003; Coglianese, 2004; Noveck, 2004). Despite the promise of a more deliberative and democratic process, rulemaking efforts have failed to produce broader meaningful public engagement. In this paper we examine if lack of adoption of participatory eRulemaking platforms can be explained by the disruption to agencies’ established rulemaking practices. We will consider how agencies react to technological innovation as a risk due to their deep-rooted organizational cultures and the impact of judicial and political oversight. We will provide examples of agency risk and culture, including from our own experiences with RegulationRoom, a socio-technological participation platform that has facilitated public participation in six federal rulemakings. We will also draw on a comparison of for-profit businesses and rulemaking agencies in thinking about motivation to adopt (or avoid) new technologies.

scholarly journals How Industry Collaboration Can Manage an Effective Source Control Emergency Response

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
James Burroughs ◽  
Andy R Myers
Keyword(s):  
Emergency Response ◽  
Service Providers ◽  
Lessons Learned ◽  
Source Control ◽  
Emergency Response Plan ◽  
Industry Collaboration ◽  
Skilled Personnel ◽  
Control Event ◽  
Tooling Technology ◽  
The Impact

Abstract Responding to a Source Control event requires a significant amount of resources, both in terms of engineering complexity and skilled personnel. The pool of available hardware is ever increasing, not only in quantity but in operational complexity. Service providers store and maintain a range of equipment, including capping stacks, subsea dispersant application tooling, technology to allow landing of capping stacks in shallow water and flowback systems. To mount a response, it is highly likely that these assets would be mobilised from various global locations. It would also require the support from many organisations with expertise in various fields. Industry has invested significantly in workshops and exercises to test and continuously improve the service provisions in place. This paper aims to: Re-visit industry led source control exercises completed to date and identify the impact they have had on preparednessDiscuss key developments industry is taking to tackle complex planning activity, including regional expertise forumsWork through the core subjects that require industry collaboration to develop a successful Source Control Emergency Response Plan (SCERP - detailed below) Industry led exercises & workshops have identified several key items that require detailed analysis to develop a successful SCERP: Response Time Modelling – understanding and planning complex supply chain requirementsResource mapping – identifying global experts who can provide engineering, modelling and operational supportMutual aid – in the event of a mobilisation, how can industry work together to ensure the most experienced people can work collaborativelyEquipment fabrication – whilst there is a range of hardware available, certain scenarios will require the fabrication of specific equipment. How can this be managed and pre-planned?Exercising and testing – how can the above subjects be effectively tested, with industry maximising experience and ensuring continuous development of lessons learned This paper will explore the steps industry has taken to methodically work through these challenges to ensure that preparedness remains a high priority. The range of industry developed guidelines that have also been developed to act as a handrail for planning purposes will be discussed. Whilst planning and executing Source Control exercises can take a significant amount of time and investment, the lessons learned, and experience gained is invaluable not only directly to industry, but wider support organisations (i.e. logistics providers). It is paramount that these lessons are built on and the experience gained is maintained for the future.

scholarly journals Changing thoughts towards digital literacy interventions for South African entrepreneurs

2018 ◽  
Vol 9 (1) ◽  
Author(s):  
Riana A. Steyn
Keyword(s):  
South African ◽  
Digital Literacy ◽  
Small Businesses ◽  
New Technologies ◽  
Service Providers ◽  
Software Systems ◽  
Adoption Of Technology ◽  
Literacy Interventions ◽  
The Impact ◽  
Standard Software

It has long been the focus of many countries around the world to see their entrepreneurs grow and to introduce interventions to assist them, as they realise the impact these entrepreneurs have on their economies. Technology is believed to be one of the biggest tools that entrepreneurs can use to assist them in growing sustainable businesses. There is an increased need for small businesses to employ information and communication technology (ICT) to enhance their businesses as part of their countries’ socio-economic development. This, in turn, leads to an increased need for digital literacy interventions for these entrepreneurs. Many interventions have tried to assist a country’s residents to adopt ICT and enhance their digital literacy levels. However, many of these did not have the desired outcomes. Many barriers prevent these initiatives from being successful, for example difficulty in retaining the current workforce, a lack of skills and human capital development, a lack of resources, security concerns, mistrust regarding ICT and ICT service providers and a lack of trust. Data were gathered over three years (2012, 2013 and 2017) to determine whether there has been any change in the uptake of technology over time, whether technology is indeed the answer to many entrepreneurs’ problems and whether some of the barriers could be overcome. An interpretivist paradigm using a qualitative approach was employed and 193 entrepreneurs were interviewed over three years to see if there was any change in their adoption of technology, which should be the case if one recognises the pace at which technology is changing. The identified barriers no longer seem to exist for South African entrepreneurs. It emerged that technology adoption and digital literacy studies should be industry-specific and should not be based on a generic approach. Thus, digital literacy cannot be used as a broad term and needs to be focused for each sector. This article proposes that most entrepreneurs have addressed one of the main barriers. These main barriers include a lack of expertise, in-house knowledge or a one-stop shop to assist with ICT queries and problems. Most of the entrepreneurs now have access to an information technology consultant or expert who can help them to become more digitally literate. Although many new technologies are being developed, certain standard software systems, such as the Microsoft Office package, will always be used. Thus, these standard software systems should be the focus of digital literacy training interventions. These interventions should be simple and easily accessible to everyone.

scholarly journals Cybersecurity post-COVID-19: Lessons learned and policy recommendations

European View ◽  
2021 ◽  
pp. 178168582110592
Author(s):  
Iva Tasheva
Keyword(s):  
Critical Infrastructure ◽  
Service Providers ◽  
Innovation Policy ◽  
Cyber Attacks ◽  
Lessons Learned ◽  
Remote Work ◽  
Research And Innovation ◽  
Novel Coronavirus ◽  
The Impact ◽  
The Eu

This article looks at the impact of the novel coronavirus crisis and increased remote work on cybersecurity and the priorities for EU action. Actions should include improving the cybersecurity of businesses, critical infrastructure and users, and creating an EU cybersecurity industry. As more and more aspects of our lives happen online, we are becoming more vulnerable to malicious attacks. This was demonstrated in 2020 when cyber-attacks increasingly disrupted the work of hospitals, service providers, government services and businesses across the globe. The frequency and scale of the attacks created a sense of urgency to improve our cybersecurity resilience. This article argues that the EU should reap the benefits of cybersecurity by pursuing a more ambitious cybersecurity agenda and putting EU values at the core of its approach. It also calls for cybersecurity to be included in all EU pillars, including the EU industrial research and innovation policy, as well as in EU investment plans and diplomatic strategy.

New services development: a study in the context of a health organization

2018 ◽  
Vol 10 (4) ◽  
pp. 366-383 ◽  
Author(s):  
Luciene Eberle ◽  
Gabriel Sperandio Milan ◽  
Deonir De Toni ◽  
Fernanda Lazzari
Keyword(s):  
Organizational Performance ◽  
Health Plan ◽  
New Technologies ◽  
Service Providers ◽  
Family Health ◽  
Structural Equations ◽  
Professional Services ◽  
Multivariate Statistical ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to highlight the understanding of the consequent factors of new services development (NSD) in the literature owing to the impact on organizational competitiveness, especially in professional services, such as that investigated by health plan operators in the present study. Design/methodology/approach The sample (customer of family health plans) consisted of 255 valid cases. For the analysis of the data, multivariate statistical techniques were used through the modeling of structural equations. Findings The results found evidence of the significant relationships between the NSD considering the constructs, client orientation, reputation, professional competences and customer retention, as consequences of the NSD, which impact on the success of the new services launched by the health plan operator from the perception of the customer. Practical implications This implies that health plan operators need to develop new customer-oriented services by investing in new technologies and having more trained and qualified staff so that they can deliver superior services and, as a consequence, have a more profitable relationship with customers. Originality/value The new services may result in greater organizational performance and greater competitiveness for health service providers.

scholarly journals The Legal Profession in the Era of Digital Capitalism: Disruption or New Dawn?

Laws ◽  
2019 ◽  
Vol 8 (1) ◽  
pp. 1 ◽  
Author(s):  
Salvatore Caserta ◽  
Mikael Rask Madsen
Keyword(s):  
New Technologies ◽  
Service Providers ◽  
Legal Profession ◽  
Service Firms ◽  
The Public ◽  
Digital Capitalism ◽  
Legal Documents ◽  
Large Sets ◽  
On Line ◽  
The Impact

This article investigates the impact of what we label “digital capitalism” on the structure and organization of the legal profession. We explore whether the rise of digital capitalism is transforming the dynamics of the legal field by the introduction of new actors and ways of practicing law, which might challenge the traditional control (and monopoly) of jurists on the production of law. We find that not only have new service providers already entered the legal market, but also new on-line tools for solving legal disputes or producing legal documents are gaining a foothold. Similarly, we also find that new intelligent search systems are challenging the role of junior lawyers and paralegals with regard to reviewing large sets of documents. However, big data techniques deployed to predict future courts’ decisions are not yet advanced enough to pose a challenge. Overall, we argue that these developments will not only change legal practices, but are also likely to influence the internal structure and organization of the legal field. In particular, we argue that the processes of change associated with digitalization is further accelerating the economization and commodification of the practice of law, whereby lawyers are decreasingly disinterested brokers in society and defenders of the public good, and increasingly service firms at the cutting edge of the capitalist economy. These developments are also triggering new forms of stratification of the legal field. While some legal actors will likely benefit from digitalization and expand their business, either by integrating new technologies to reach more clients or by developing new niche areas of practices, the more routinized forms of legal practice are facing serious challenges and will most likely be replaced by technology and associated service firms.

scholarly journals Has Schumpeterian Creative Destruction become more destructive?

2016 ◽  
Vol 3 (1) ◽  
pp. 9
Author(s):  
John Komlos
Keyword(s):  
New Technologies ◽  
Value Added ◽  
Economic Cost ◽  
Creative Destruction ◽  
Capitalist Development ◽  
The Impact ◽  
Net Value Added ◽  
Industrial Revolutions

<p align="justify">Schumpeter’s concept of creative destruction as the engine of capitalist development is well-known. However, that the destructive part of creative destruction is a social and economic cost and therefore biases our estimate of the impact of the innovation on GDP is hardly acknowledged, with the notable exception of Witt (1996). Admittedly, during the First and Second Industrial Revolutions the magnitude of the destructive component of innovation was no doubt small compared to the net value added to employment or GDP.</p><p align="justify">However, we conjecture that recently the new technologies are often creating products which are close substitutes for the ones they replace whose value depreciates substantially in the process of destruction. Consequently, the contribution of recent innovations to GDP is likely upwardly biased. This note calls for further research in innovation economics in order to measure and decompose the effects of innovations into their creative and destructive portions in order to provide improved estimates of their contribution to GDP or to employment.</p>

New Perspectives

2017 ◽  
pp. 269-294
Author(s):  
Albena Antonova
Keyword(s):  
Business Models ◽  
New Technologies ◽  
Social Innovation ◽  
Social Role ◽  
Business Organizations ◽  
Digital Communities ◽  
Private Interests ◽  
Private Organizations ◽  
Governmental Institutions ◽  
The Impact

As social and environmental struggles intensify, the raising economic and social role of not for profits will continue to expand globally. Not for profit organizations have the potential to mobilize digitally-enabled communities and to work on various global challenges, overcoming the limitations of governmental institutions, local and short-term perspectives of public administration and private interests of business organizations. The present research aims to reassess the business models and value creation behind NFP operational models, their role for social innovation, the impact of the new technologies and the characteristics of the emerging digital communities. Further, there will be discussed the new perspectives for NFP development as innovative instruments, protecting social interests between government and private organizations, and contributing to solve increasing social problems.

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