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The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations
The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations
By Philippe Aghion, Céline Antonin, and Simon Bunel
400 pp, Belknap Press, 2021
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More than 60 years ago, research by the economist Robert Solow highlighted the importance of innovation for growth but shed little light on how to generate that innovation. Aghion, Antonin, and Bunel, who are responsible for much subsequent research in this area, argue that fostering innovation is all about balance. Innovation thrives with competition, but too much competition will preemptively diminish the rewards of new technologies, businesses, and ideas. International competition can stimulate innovation and efficiency, but too much risks provoking a backlash against globalization. Successfully navigating the supply chain disruptions created by COVID-19 requires strong political leaders to implement smart policies, but not leaders so strong that they can suppress organizational innovations that will disfavor them or their allies. The authors explain these dynamics and more in an eminently accessible fashion.