Scott, Jonathan M.

English

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142 ENTREPRENEURSHIP AND INNOVATION Vol 10, No 2Book reviewsways that members of other generationshave to adjust in order to accommodatethe innate preferences and personal workstyles that characterize the Net Genera-tion. By comparison, he expendsconsiderably less effort in explaininghow the Net Generation likewise has anobligation to compromise and conform tosome extent to the social, political,economic and cultural expectationsestablished by their predecessors. Nearthe end of Grown Up Digital, however,Tapscott does provide some valuableinsights and advice for the Net Genera-tion based on the results of his study.These include recognizing (1) theheightened value of a college education,(2) the efficacy associated with beingmore patient at work, (3) the centralimportance of family life, (4) the virtueof having more respect for experience,(5) the inherent advantages of living aprincipled life of consequence, and (6)the supreme importance of perseverancein the face of adversity.In the final analysis, Tapscott isoverwhelmingly optimistic about thefuture and he manages to end the book onan upbeat note. After laying out all therelevant issues and ideological impera-tives, he comes to the inevitableconclusion that ‘…this generation willchange the world. They are alreadybringing and implementing radical viewsregarding the way business should beconducted and about the process ofdemocratic governance’ (p 310).Ultimately, Tapscott succeeds indefending his primary thesis that we arenot in Kansas anymore. Perhaps we neverwere. In any event, it is a safe bet that theNet Generation is indeed changing theworld in ways that would have seemedincomprehensible only a few years ago.And yes, resistance is futile.Aaron W. HugheyDepartment of Counseling andStudent AffairsWestern Kentucky UniversityBowling Green, KY, USATechnological change enhancingproductivity and economic growthThe Economic Theory of Invention and Innovationedited by Albert N. LinkInternational Library of Critical Writings in Economics No 215, Edward Elgar,Cheltenham, 2008One criticism of many research papers(and the research field of innovation isnot immune from this deficiency) is thatthey are not sufficiently grounded intheory. Therefore, Albert N. Link’s editedcontribution to the International Libraryof Critical Writings in Economics isparticularly welcome. The volume, whichis structured in five parts, brings togetherpractically all the key writings on theeconomics of invention and innovation –in other words, the seminal articles thathave laid the groundwork for contempo-rary research in the field.2 I will notattempt to summarize all these articles,but provide below a broad review of thisbook and identify some genuine high-lights.Academics who are teaching and/orwriting in the field will, as a result, findthe book of particular utility in under-standing its development and, indeed, itis potentially magnificent as a tool todeepen students’ knowledge of theeconomics of invention and innovation.In his introductory chapter, Linkrightly emphasizes that technologicalchange enhances productivity growth(and economic growth) and ‘ultimatelyleads to an improvement in the quality oflife’ (p ix), which is thus important froma policy perspective. These aspects arethe rationale for the book and theimportance of the subject area, and Linkmakes an important distinction, notingthat we should:‘think of an invention as the creationof a new technology. Innovation, then,is the first application of the invention– the technology – in production.’ (ppx– xi)An important distinction is whether aninvention and/or innovation is (a)exogenous (outwith an organization orunexplained: Part I), such as technicalchange in the ‘aggregate productionfunction’ (Solow, 1957) or disaggregatedinto ‘an inter-industry and intra-industrycomponent’ (Massell, 1961); (b) induced(‘purposive’ rather than unexplained: PartII), which is, for example, well comple-mented by Ahmad’s (1966) theory andFellner’s (1971) empirical support; or (c)endogenous (within: Part III), such asHébert and Link’s (2006) chronology ofthe entrepreneur as an innovator. Thearticles in the first three parts provide abroad basis for understanding thetheoretical underpinnings of exogenous,induced and endogenous innovation.Of great interest to this reviewer, giventhe rising interest within enterprise andinnovation pedagogy of experientiallearning, is one of the final articles inPart III on the ‘learning by doing’ aspectof innovation (Arrow, 1962), which leadsnicely into Part IV (sources of innova-tion), with Cohen and Levinthal’s (1989)classic article on innovation and learningwithin the R&D process, described as its‘two faces’ and the concept of ‘learningbefore doing’ in developing new processtechnology (Pisano, 1996). Kamien andSchwartz (1971), also in Part IV, arenotable for their fascinating study ofrisky R&D projects’ expenditure patterns– an issue still relevant today, particularlyfor those financing high-risk R&D(assuming such investors are notfoolhardy enough to use financial riskmodelling, as major banks have done toENTREPRENEURSHIP AND INNOVATION Vol 10, No 2 143Book reviewstheir – and our – misfortune). Finally,Part V brings together six articlesproviding great insight into the adoptionand diffusion of innovation – there are,for example, papers on the rate ofimitation (Mansfield, 1961) and onfactors influencing technologicaldiffusion (Rosenberg, 1972). Meanwhile,Arrow (1969) reviews the production andtransmission of knowledge and offers thisgem:‘My guess is that economic factorshave little to do with bias in techno-logical progress (though they mayhave a good deal to do with itsmagnitude). European desire forspices in the late fifteenth century mayhave had a good deal to do withmotivating Columbus’ voyages, but thebrute, though unknown, facts ofgeography determined what in factwas their economic results.’ (Arrow, p35)Because of Link’s fine pedigree in thefield, I do not feel there are any signifi-cant omissions – though given that theearliest article in the volume is that byBrozen (1953), none of Schumpeter’sseminal papers are included. The choiceof articles in this book is almost inspiredand is necessarily focused on economicstudies with an empirical and positivistparadigm (hence the omission ofDrucker, 1985). Furthermore, the volumeinevitably focuses on products andprocesses and does not cover theburgeoning field of innovation inservices.Entrepreneurship academics shouldread this volume, as it will remind themthat ‘corporate entrepreneurship’ or‘intrapreneurship’ is, in effect, inventionand innovation.Dr Jonathan M. ScottQueen’s University ManagementSchoolQueen’s University Belfast, NorthernIrelandNote1 Full references have been omitted, butcan be found on the contents page of Link(2008).ReferenceDrucker, P. F. (1985), ‘The discipline ofinnovation’, Harvard Business Review,May–June, pp 53–64.

Technological change enhancing productivity and economic growth: The economic theory of invention and innovation

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Technological change enhancing productivity and economic growth: The economic theory of invention and innovation

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