SMST120A06: Wk 6 Revision

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SMST120A-06 Wk 6 Revision idea economy
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Hofs idea factory (1) Business shifts
inspiration to innovation (pp. 185-189)

• Source style of this reading are instructive
• BusinessWeek businesspeople gt academics
• This is a typical special feature about managing
  and investing successfully
• It sits alongside pieces on Inflation
  Targeting, Skittish about Skype,
  Korea Samsung floors it in R D, and Japan
  Toyotas hot prototype
• Also instructive is creative format like a
  womans magazine

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Hof (2) Avoiding commodity hell and heading to
innovative heaven

• Toughness of making a living through commodities
  ask NZ businesses like Fonterra and Zespri
• Struggle to get innovative products to market
• History of development of Amazon
• CEO Bezos on Amazons Culture of divine
  discontent You have to go down blind alleys.
  But every once in a while . . . . one opens up
  into this huge broad avenue. That makes all the
  blind alleys worthwhile.

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Hof (3) Creation to innovation

• Hargadon Guiding creativity to innovation
  fostering environment for repeats
• Christensen Innovators dilemma Serving
  existing market leaves future markets open to low
  cost start-up competitors.
• Starbucks shifts just coffee shop assumptions
  
• Third place for hanging out
• Music lines and wireless connections
• Starbucks card encouraging customer loyalty
  and raising USmillions in venture capital on
  launch with no risk to company

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Hof (4) Creation to innovation

• Starbucks vs Apple on making money from
  downloading music
• Steve Jobs From Apple computers to I-pods to
  Pixar movies to . . .
• Bezos Most people unleashed, are innovators . .
  . this great species of tool-using animal who
  likes to make our world better
• Companies that can unleash that particular animal
  instinct are the ones that will thrive

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Flight of the Creative Class (1)

• Article condenses Richard Floridas (2005) book
  The Flight of the Creative Class The New Global
  Competition for Talent.
• Simple idea is that USA is risking its most
  crucial economic advantage its status as an
  international talent magnet
• The risk is compounded as freer and expansive
  conditions expand elsewhere (Peter Jackson and
  Wellington again a key example) and competition
  increases across the planet see Global
  Creative-Class Index on p. 193)

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Flight of the Creative Class (2)

• Hypothesis Past and existing US growth turns on
  one key factor
• its openness to new ideas, which has allowed
  it to mobilize and harness the creative energies
  of its people (p. 190)
• Floridas view aligns with trends suggesting that
  creativity has moved from being viewed as the
  opposite of moneymaking to a precondition for it.

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Other creative places Earlier impacts

• Creative Cities
• Creatives tend to cluster in flourishing art and
  music scenes, interesting histories, active
  nightlife, ample outdoor recreation, young people
  and gays
• Most creatives grew up feeling like outsiders, so
  value places that welcome people of different
  views, lifestyles, orientations.

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Floridas Creativity index

• Ranks cities by
• how many creatives live there
• how much hi-tech patent innovation
• how many gays live there (Gay index)
• Creativity fuelled by contact with different
  perspectives
• Diversity appreciated and sought out
• Conformity either avoided or seen as not that
  attractive
• Criticism homosexuals, sophistos, trendoids

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Floridas people evidence

• Impact of immigrants on US
• 1. Finance
• Andrew Carnegie to George Soros
• 2. Film
• Samuel Goldwyn to Stephen Speilberg
• 3. Fashion
• Helena Rubenstein to Liz Claiborne
• 4. Music
• Ahmet Ertegun, Turkish-born founder of
  Atlantic Records (Ray Charles, Cream, John
  Coltrane, Aretha Franklin, Led Zepplin)

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Floridas impact immigrants (2)

• 5. Science
• Enrico Fermi and Albert Einstein
• 6. Hi-Tech
• Sergey Brin (Moscow-born co-founder Google)
  
• Taiwans Jerry Yang of Yahoo
• Hungarian-born Andy Grove of Intel
• French-born Pierre Omidyar of eBbay
• Sabeer Bhatioa (Hotmails Bangalore-born
  cofounder)
• Egs in article Vinod Khosla of Sun
  Microsystems venture capitalist
• An Wang of Wang Laboratories

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Floridas 3 Ts

• Technology ( science) role of international
  students in research and development and
  competitive standards threat to US greater than
  terrorism through restricted immigration
• Talent Attracts talent and nationally and
  internationally in short supply. Essential to
  tackle challenges by increasing creative
  opportunities and transforming education
• Tolerance Key factor in drawing/retaining talent
• E.g. Newsweek Every visa officer . . . lives in
  fear that hell let in next Mohammed Atta. As a
  result, he is probably keeping out the next Bill
  Gates

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Floridas conclusions (1)

• Currently creativity tends to be regional rather
  than national
• Currently creative industries co-exist
  unsustainably with huge economic inequities
  regionally and internationally
• To sustain creative spaces develop run down areas
  and equalise opportunities (Creative NZ to
  Creative Wellington)
• From TNC to H-town, Hamilton, Creative Waikato?

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Floridas conclusions (2)

• Embrace arts, education, and cultural communities
  ( communities of all incomes, occupations, and
  ages)
• Commit to developing strategies to invest in
  people
• In particular foster creativity and innovation
  for people involved in service and manufacturing

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Floridas conclusions (2)

• Allow free people and trade movement outsourcing
  and immigration create energy and opportunities
• Work to abolish large inequalities as they
  restrict creativity of population and threaten
  peace and social stability (see Paris)
• Do it globally by reducing immigration barriers
  and locally by affordable housing and creative
  buildings (e.g. garage and loft-style space)

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Floridas conclusions (3)

• US can reclaim its status as a truly open society
  and lead in making world more integrated and
  prosperous
• US can reassert itself as a risk-taking society
  that encourages entrepreneurship and
  experimentation by caring for its people and
  providing for their basic security physical,
  social, political, and economic.
• Nothing short of this expanded notion of what
  security means will be sufficient

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Floridas conclusions (4)

• Shift from traditional US metaphor of melting pot
  to Canadian one of mosaic
• To be recognised, but not stereotyped or
  stygmatised, based on ones background
• Future organising principle Much more in tune
  with emphasis on individual creativity

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