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QUESTION 1

All over the world, it is creative people who create new business, new enterprise, new markets, new brands, new life styles and new trends. It is creative people who build successful companies and drive successful economies around the world. It is creative people who discovered, who connected, who invented, who innovated, who communicated. Creativity is without doubt the world's most important single resource.

A creative country will be a successful country. An innovative economy will be a successful economy. That is the reality. We know the world's richest and most advanced nations are also the world's most creative, most innovative. These are countries with well-developed creative industries which provide effective on-going research and development support to their industries.

QUESTION 2 Genovasi which is a combination between generation and innovation) or The Innovation Generation. This new initiative of the government is want to develop skills among local youth innovation that allows them to create wealth and improve their living standards.

Government establishment of Genovasi as an innovation organization where young Malaysians will be able to receive an induction into innovation is spearheaded by Unit Inovasi Khas (UNIK) under the Prime Ministers office

Genovasi will provide young graduates and professionals with a one of a kind opportunity to become Innovation Ambassadors via the Innovation Ambassador Development Programme. Innovation Ambassadors will be catalysts for change to spread the concepts, best practices and applications of innovation. Innovation Ambassadors will be expected to bring positive changes to three core areas: Improvement of public service delivery within Government departments, ministries as well as town councils. Improvement of the quality of life at villages and local communities. Creation of new economic wealth through entrepreneurship or industry gamechanging efforts.

The Innovation Ambassador Development Programme combines design thinking with business and organizational thinking. There are two tracks within the programme: The Core Track allows candidates to understand innovation methodology and collaborate in cross-disciplinary teams.

The Advanced Track provides candidates with the opportunity to work on hands-on challenges which involves solving real world problems. Genovasi is partnering with leaders in innovation to anchor the Innovation Ambassador development programme:

Question 3

Creative destruction refers to the existing product (i.e., goods and services), professions, companies, production techniques, and even entire industries becoming old and dying out as a result of technology advances. The process innovation mechanism by which new production units replace outdate ones. The value of old is destroyed by the new.

Examples of Creative Destruction

Creative destruction can operate different speed in the regions and countries as a result of differences in cost structures, consumer tastes, government policies, etc. For example

This is the great example is personal computer. The industry led by Intel and Microsoft, destroyed many mainframe computer companies, but in doing so, entrepreneurs created one of the most important inventories of this century. Another example, doing business CDs over took tapes, now will mp3 player (iPod) take over CDs. CDs are not gone, but now day most people get their music off the internet. They download a song and save it onto their computer and put it on their mp3 player (iPods). In this era people do not carrying a CD player and listening CDs any more, but they might listen to a CD in their car.

Creative destruction does not necessarily mean that all new things are always superior and that old things must be lower. And many victims of creative destruction do not disappear completely, but instead they continued with small roles, and may vary. For example, candle is still produced, but in most of the world simply as decorative items rather than as the main source of light. Similarly, blacksmiths still exist in industrialized countries, but again mainly just to produce decorative items rather than to make basic household and industrial products

Schumpeter and Creative Destruction

The term creative destruction was introduced into the economics mainstream by Joseph A. Schumpeter (1883-1950) in his 1942 book Capitalism, Socialism and Democracy. For Schumpeter, who is widely regarded as one of the greatest, but most underrated, economists of the twentieth century, the fundamental principle of capitalism was innovation and the introduction of new technology rather than the perfect competition upon which his colleagues generally focused their attention. He went so far as to state that "the process of creative destruction is the essential fact about capitalism." The main idea of this principle is that innovation (which is a type of creation) encourages economic growth and thus is central to capitalism's functioning. But innovation by one company also leads to destruction of the monopoly market shares of its complacent competitors

Benefits of Creative Destruction

Creative destruction not only inherent characteristics of capitalist society (ie, a relatively free market) but it can also be a very useful feature, at least with regard to the economy as a whole. This is because it allows resources to be transferred out older, less efficient industries and into newer, more efficient industries that produce better and / or less expensive products. It therefore plays an important role in economic growth, which can, if managed properly, lead to higher incomes and therefore a higher standard of living.

Moreover, although creative destruction is largely a result of technological advance, it also helps to promote technological advance, which, in turn, further promotes economic growth.

For example, the incentive for firms to innovate can be much stronger in an industry in which one or more other firms have introduced a disruptive technology than in a stagnant industry because the alternative becomes losing market share and profits to the innovating firms.

Of course, there are also costs to creative destruction. While they will often be small relative to the economy as a whole, such costs can be extremely large to those who have to bear them directly, such as the entrepreneurs whose businesses and savings are wiped out, the skilled craftsmen who lose their lifetime investment in their craft, and the ordinary workers who may be too old to find new jobs at comparable wages.

More generally, creative destruction refers to the fact that new ways of organizing production or distribution while being creative

More generally, creative destruction refers to the fact that new ways of organizing production or distribution while being "creative" (having benefits) also are destructive (having costs). Many assume that the benefits automatically exceed the costs, but there is no reason why this should always be so. Independent farmers being driven out of business by agribusiness corporations may be forgiven if they think in terms of "destructive creation." There are several kinds of innovations, i.e., new ways of organizing production and distribution:

New ways to organize production, often using new equipment New methods of inventory management New products New methods of advertising and marketing New ways to transport products New methods of communication (e.g., the Internet) New management techniques New markets New sources of labor and raw materials

New ways to lobby politicians or new legal strategies New financial instruments and/or scams

Many of these innovations can contribute to growth while often leading also to the (gradual) death of old ways of production and ways of life. But some of these innovations are not necessarily positive in their impact. Most economists agree that long-term economic growth is largely the product of technological innovation. Thus, some see it as a scandal that Schumpeter is absent from many 600 page elementary economic texts' indexes. Schumpeter's solution would be for a new generation of textbooks to emerge, which students would choose, in partial defiance of their lecturers. Wikipedia is now one of those texts!