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.