Innovation

Innovation is critical to stimulating and sustaining economic growth of society because it is the key to that societies success. Innovation is not just about adding or developing new technology, but it is coming up with new ways to do old processes better. Blockbuster and Hollywood Video would be an example of businesses that were successful at one time almost monopolizing the video rental industry. Neither company was innovative in competing price with Red Box. The videotape technology has dissipated and most people only own a DVD player, so no one was renting videotapes anymore. Red Box has taken over the movie rental industry because you can rent the movie at one spot and take it back another and the fees are very minimal. Antioch, TN is another example of not really being innovative which has caused the area not to sustain economically. Many businesses have closed or moved out of the area to where there is growth. The Hickory Hollow Mall, which is in Antioch, had many popular clothing and department stores, such as Dillard’s and Macy’s, have moved out of the mall. These major stores leaving the area have caused the economic growth and the market value in the area to decline. Homeowners have moved out of the area whether they were able to sell their property or not and restaurants have not been very successful. When stores and restaurants close down or move out the area, they often do not relocate the employees they had working for them. This is a problem because it then creates unemployment and consumers are not able to purchase products, which then causes the unemployment rate to go up for the city thus going up the chain to the state. If there are no consumers, then companies around the country responsible for offering or making the products suffer economically as well and it continues on to effect the country as a whole.

Knowledge and Competence

Knowledge and competence are a critical source of competitive advantage in the world because it is constantly evolving. For example, in order to have a competitive advantage in the job market alone an individual must stay knowledgeable and competent. There used to be a time when you could get a job with just a high school diploma and make good money, but as technology and the job market changed, the demand for a higher degree became a necessity. As of now, it is beginning to become a challenge to obtain a good paying job with a bachelor’s degree. The time is changing to where an individual needs a master’s degree in order to compete in the job market. Even though you may already have a job and been there for many years with a bachelor’s degree, it has become an advantage for the person who goes back to school for higher education to get promoted in a position where it could also be someone who has more experience. Many companies offer to contribute monetarily to their employees’ education as long as it is beneficial to them. They may do a tuition reimbursement program where they give a portion of it back or they may for it all. Some companies have in house training departments to conduct training. The training department is not only responsible for training new employees coming in but they are also responsible for continuing education in the company as they develop or add new technology, processes, and procedures. If we do not continue to gain knowledge and be competent, we run the risk of becoming obsolete or dispensable depending on the situation. As a nation we have to continue to grow in knowledge and competence in many areas in order to maintain, compete, and have an advantage over other countries.