A review of contemporary innovation literature: A Schumpeterian perspective
Cheng-Hua Tzeng
Fudan University, School of Management, Department of Business Administration, Shanghai, China
PP: 373 - 394
Abstract
Adopting a Schumpeterian perspective, this article reports a survey on contemporary innovation literature from the 1950s to the present.
By sorting innovation research into three main schools - the capability school, the corporate entrepreneurship school, and the cultural school - this article discusses the nature of innovation, the inherent logic of innovation, relationship among members, focal concerns, and apprehension of time of the three innovation schools, and addresses three perennial issues of innovation: institutionalizing vs. de-institutionalizing innovation; technology push vs. market pull; and incrementalism vs. radicalism.
Finally, this paper suggests that innovation research communities go a step further to broaden the perspective and integrate the literature in the search for a humanistic theory of innovation.
Keywords
Schumpeter, innovation, capabilities, corporate culture, corporate entrepreneurship
Article Text
Innovation nowadays is at the top of the strategic agenda of corporations. In fact, the current catch phrases such as 'creative response' and 'creative destruction' can be traced back to Schumpeter's age-old works the Theory of Economic Development (1934) and Capitalism, Socialism and Democracy (1942). Peter Drucker once said that both Schumpeter and Keynes are the 'two greatest economists of this century' (1986: 104). Nevertheless, 'it is Schumpeter,' Drucker continued, 'who will shape the thinking...on economic theory and economic policy for the rest of this century, if not for the next thirty or fifty years' (1986: 104). An article entitled The Age of Schumpeter in The American Economic Review even stated, 'could the third quarter of this century justly be called the age of Keynes, the present fourth quarter has a fair chance of becoming the age of Schumpeter' (Giersch 1984: 286-7).
Echoing Rosenberg, who maintained that 'the study of technological innovation...consists of a series of footnotes upon Schumpeter' (1982: 106), this paper aims to review contemporary literature from a Schumpeterian perspective. This survey covers the innovation literature from 1959 to 2008, with the majority of materials coming from those published between 1970 and 2007. The criterion used for selecting the articles for review was legibility. By legibility, we mean that the core ideas and contributions of each article are recognizable and intergratable into the Schumpeterian tradition. In addition to consulting numerous syllabi of innovation management courses at the Technology Innovation Division of Academy of Management to ensure that this survey did not miss significantly important articles, the author also examined many review articles Unlike prior reviews which either focused on economic (Freeman 1994) or sociological (Kanter 2000) perspectives on innovation, or simply concentrated on some certain notions of innovation such as network (Luke et al. 2004), dominant design (Murmann & Frenken 2006), and routines (Becker 2004), this article goes beyond them, contributing to the literature in two aspects. It juxtaposes not only economic and sociological but also cultural perspectives and integrates important notions of innovation under these three perspectives, endeavouring to provide a big picture of innovation.
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