Article

‘The real risk of innovation’

The real risk of innovations are not the innovations on itself. It is the thought behind the innovation.. Most companies pretend to live for innovation. ‘Innovation is the core of our business’ stated IBM for example. But why? Do they really think innovation will make the world a better place? Or do they innovate because of this: $$$. I am not a anti-capitalist but although I am not against capitalism, I think we still can have a critical perspective on private innovations. Is the role of money within the world of innovation a real risk for the innovation itself?

Money is the key to most innovations.

Let’s be clear: the first goal of innovating something is to make something better. Most of us tend to think about sustainable cars or ways to overcome climate change. However, innovation can also be providing an even faster car, just as polluting as it already was. An innovation on itself is not responsible at all. That is why our course is called responsible innovation. When we see innovation like this we understand companies. They need new markets to sell their products. The bases on which they exists is innovation.

Although most innovation is done by companies, some innovations are not. Public authorities or non-profit organizations produce innovations as well. But there is a difference between them. Most of this innovations have a different bases on which they are created. A more responsible bases. Private companies think about their profitability. Money is needed to keep the business running. Innovations of companies are more or less influenced by this. When the innovation is really solving societal issues, but is too expensive, no money is spend. In that way companies are influencing the climate of innovation. If the risk of investing in a responsible innovation is too high, the innovation is not implemented.

This way of thinking is very dangerous for innovations. The money of private companies more or less defines the innovations companies produce. Or even deeper; we define this innovation. Or wishes for new products define the way companies think about innovation. Of course or task is to be aware of all the societal problems we have at this moment. Real responsible innovations are needed! Right now!

Responsible innovations and business profits can go hand in hand. This win-win situation is the optimal point for the society to benefit. A great example is Unilever. The CEO, Paul Polman, realizes that change in mindsets of companies is needed. He believes that customers in the future will not buy any products from environmental unfriendly producers. New responsible products are added to the product portfolio. In this way, Unilever and the society take advantage.

The real risk for (responsible) innovation is the role of money. Nowadays products are developed because of a better profitability. Consumers are a key player in this whole development process. The consumer decides which products it buys. Companies are willing to meet this wishes. Are we aware of our key position? Do we see the real risk of innovation?  

Corné Smaal / Business Administration / Erasmus University