Abstract

In this paper the nature of innovation will be defined and explored especially as it relates to Economic outcomes such as wealth and income distribution. The nature of innovation, its lifecycle, and its methods are presented and discussed. Key concepts such as the S-curve of innovation, the “Innovator’s Dilemma”, and Scientific Revolutions are also presented. Following this an exploration of how Economics views Innovation especially by Henry George who saw innovation as key to our survival and Joseph Schumpeter who saw it as required by capitalism. This discussion will show the connection between innovation cycles on a product or technology level and on the long-range economic scale. Examples of expanding and declining technologies demonstrate these cycles. Finally, data is shared around innovation, wealth, and income distribution across societies. Conclusions of the talk include the relationship between policy and innovation, the linkage between R&D and wealth creation, and the correlation between innovation and reduced wealth disparity.