Juan Pablo Arizpe Roqueñi

A01026931

Innovation Founding Fathers

Joseph Schumpeter
What was/is their story?
He was born in Czech Republic and studied economics. He was minister of
finance of Austria, president of a and and professor, but left Austria due to the nazis. He
then became a professor at Harvard and was the first immigrant to be made president
of the American Economic Association.

Where and when were they born?

8 February 1883. Triesch, Moravia, Austria–Hungary

Where did their lives happen?

Most of his professional life happened once he moved to the USA. He became a
professor at Harvard and wrote and presented his most famous theories in his book
“Capitalism, Socialism, and Democracy”.

Did they do anything in favor of innovation? What was it?

He proposed multiple new theories that hadn’t been thought of before, such as
his famous theory on “Creative Destruction” and entrepreneurship.

Did they formulate any specific theory?

“Creative Destruction” refers to the process economies go through of being
constantly replaced by new and more innovative processes and companies. He also
famously coined the term “entrepreneurship”, and believed that they would be the ones
who made a better economy by trying out new things in the market.
Peter Drucker
What was/is their story?
 He was an Austrian-American who moved to the US and wrote many books
about business management and more. He was greatly influenced, coincidentally, by
Joseph Schumpeter.

Where and when were they born?

November 19, 1909. Vienna, Austria

Where did their lives happen?

Most of his life really flourished after moving to London from Germany, and then
to the US in the end. This is where he wrote the most books and the most about
management in general, as well as where he got to consult with high end executives in
large companies, to give out his advice.

Did they do anything in favor of innovation? What was it?

He innovated the process of management and ended up helping several high
end executives in huge companies, such as General Motors and Coca Cola.

Did they formulate any specific theory?

Part of his management theory was based on the fact that he believed that
management was a specific function and being a manager was a specific responsibility
of certain people. This helped people focus specifically on managing instead of doing it
as a secondary action in their jobs.

Michael Porter
What was/is their story?
He was born in the United States and studied at Harvard University, where he is
now a professor. He was one of the founders of a consulting firm called The Monitor
Group and has consulted for various other firms. He is most famous for creating the
Porter's 5 forces model.

Where and when were they born?

May 23, 1947. Ann Arbor, Michigan.

Where did their lives happen?

Most of it happened centered around Harvard University, where he studied at
and obtained a masters degree in economics.

Did they do anything in favor of innovation? What was it?

He was very innovative in the way he analyzed business based on his 5 Forces
Model. He also created the Porter Hypothesis, which he said would impulse innovation
and competitiveness through strict environmental regulations.

Did they formulate any specific theory?

His two most famous ones are the Porter’s 5 Forces Model, which is a method
for analyzing business competition, based on the bargaining power of suppliers,
bargaining power of buyers, threat of substitutes and threat of new entrants. His other
famous theory is that, in certain cases, strict environmental regulations would help
promote efficiency and encourage more innovations.

Clayton Christensen
What was/is their story?
He was an american who studied at Oxford and Harvard. He was mostly known
for his published works such as The Innovator's Dilemma, which has been called "the
most influential business idea of the 21st century".
Where and when were they born?
April 6, 1952. Salt Lake City, Utah.

Where did their lives happen?

Pretty much all of it in the US, while teaching at Harvard and writing material on
business, disruption and innovation.

Did they do anything in favor of innovation? What was it?

In his book “The Innovator’s Dilemma”, he talks about the theory of Disruptive
Innovation.

Did they formulate any specific theory?

He created the theory on disruptive innovation, which is an innovation that
creates a new market and disrupts an existing one. It creates a new product that wasn’t
thought of before in any way shape or form, and thus creates an entire new client base,
almost out of thin air.

Do they have anything in common?

Yes. They all thought of ways of disrupting the industry in one way or another. They all
believed that, through innovation, one could create the best possible future for a
company, and that is why they all made different theories on innovation and business.
Bibliography

Joseph Schumpeter. (2020). Investopedia. Retrieved 21 February 2020, from

https://www.investopedia.com/terms/j/joseph-schumpeter.asp

About Peter Drucker * Drucker Institute. (2020). Drucker Institute. Retrieved 21 February 2020, from
https://www.drucker.institute/perspective/about-peter-drucker/

About Michael Porter - Institute For Strategy And Competitiveness - Harvard Business School .
(2020). Isc.hbs.edu. Retrieved 21 February 2020, from https://www.isc.hbs.edu/about-michael-
porter/Pages/default.aspx

Disruptive Innovation. (2012). Clayton Christensen. Retrieved 21 February 2020, from

http://claytonchristensen.com/key-concepts/