Nondestructive Creation
“How, then, can policymakers and corporate chiefs better encourage a vibrant system of enterpreneurial risk taking . . . ? The first step is to recognize and even embrace the uncertainty and ambiguity inherent in a dynamic economy, spilling out beyond the future for entrepreneurs to the economy as a whole. . . Governments that try to protect their people from uncertainty by fiat, like many of the ‘social welfare’-prone governments in western Europe, will, according to Phelps, succeed primarily in slowing down their own economic growth.”
“General knowledge . . . is an important enabler of the virtuous circle of creativity, innovation and growth. In Phelps’s view, knowledgeable managers are better able to evaluate innovation and have the confidence to pursue it. . . This point is consistent with recent empirical evidence linking general management talent (grounded in a liberal arts and science background and with awareness of management techniques) to firm-level productivity growth.”
From Booz & Co’s website, for copyright reasons I cannot distribute it, but you can register for free to view the article.
