5. Thomas Edison’s organizational genius

‘Thomas Edison’s organizational genius’ uses examples of Thomas Edison’s work to show how he pioneered a highly structured way of organizing innovation. He developed the phonograph, electric light bulb, and electrical power distribution, and improved the telephone, telegraph, and motion picture technology, as well as founding numerous companies, including General Electric. He always pursued several lines of research, wishing to keep options open until the strongest contender emerged. By working on numerous projects simultaneously, Edison hedged his bets so future income streams did not depend upon one development. Further examples of other businesses using Edison’s ideas on workplace, structures, people, creativity, and technology include IDEO, Toyota, 3M, Google, and Amazon.

2. Joseph Schumpeter’s gales of creative destruction

‘Joseph Schumpeter’s gales of creative destruction’ shows how innovation is creative and beneficial—bringing new industries, wealth, and employment—and also destructive of some established firms, many products and jobs, and the dreams of failed entrepreneurs. Innovation is essential for competitive survival. Most innovations are incremental improvements—providing new models of existing products and services, or adjustments to organizational processes, but most attempts at innovation fail. Organizations rarely innovate alone: they do so in association with others, including suppliers and customers. The various models and theories of innovation are discussed, concluding that understanding the time dimension in innovation is critical. How innovations are consumed and diffused is also considered.

1. Josiah Wedgwood: the world’s greatest innovator

‘Josiah Wedgwood: the world’s greatest innovator’ looks at the important contribution made by a Staffordshire potter to an improved quality of life and work in the society in which he lived. Josiah Wedgwood (1730–95) was a product innovator, constantly searching for innovation in the materials he used and design forms of his pottery, seeking out collaboration with other companies, artists, and industries. He made significant contributions to building national infrastructure, helped create a dynamic regional industry, pioneered new export markets, and positively influenced government policies. He invested extensively in the training and skills development of his employees and introduced a remarkable number of marketing and retailing innovations.

6. Innovating the future

The challenges and opportunities for innovation are immense. As well as creating new sources of wealth, innovation is essential if we are to cope with climate change, provide better water and food, improve health and education, and produce energy sustainably. The keys to future innovativeness lie in an organization’s ability to foster creativity and to make decisions and choices based on being well prepared, informed, and connected. The challenge is in encouraging, selecting, and configuring the best ideas. ‘Innovating the future’ considers the roles of governments and universities in innovation and different innovation strategies. It also discusses the relationship between innovation and automation in the form of AI and robots.

3. London’s wobbly bridge: learning from failure

‘London’s wobbly bridge: learning from failure’ considers the ways in which much progress in science, engineering, and innovation is built upon failure. It is because of risks and uncertainties that there is so much failure in innovation; however failures provide valuable opportunities for future improvements. Innovation encourages organizational and personal learning but requires strong leadership to outweigh the potential negative outcomes. There is continuing debate on the impact of innovation on employment and its effect on the quantity and quality of jobs. Economic wealth depends upon improved productivity, and this is frequently driven by innovation. Innovation and improvements in technology and organization contribute to what is known as multi-factor productivity.

4. Stephanie Kwolek’s new polymer: from labs to riches

Innovation usually involves the combination of ideas derived from many different places. Innovation is also affected by wider social, cultural, political, and economic factors. These include contributions made by cities and regions, government policies, and the ‘systems of innovation’ organizations belong and contribute to. ‘Stephanie Kwolek’s new polymer: from labs to riches’ considers the various contributors to innovation: entrepreneurs and venture capitalists, research and development departments, customers and suppliers, collaborative partners, universities, and relationships with government. The case of Stephanie Kwolek and her product Kevlar epitomizes the corporate R&D department’s contribution to innovation, but also highlights its shortcomings; the polymer took eighteen years to develop.