Recognizing and Navigating Creative Destruction
Recognizing and Navigating Creative Destruction
The tremendous progress in the tech ecosystem over the past few decades has brought previously-almost-unimaginable urban growth and change. New product innovations in computers, software, semi-conductors, telecommunications equipment, and a host of other developments have come to dominate modern information technology, and to create today’s knowledge economy.
This progress has also brought the decline of more than a few industries and the destruction of jobs, traditions, social norms, values, conventions, and institutions. As progress occurs, many are left behind, abandoned in the basement. The print media industry, for instance, has experienced precipitous declines in jobs, newspaper circulation, advertising revenue, and traditional print journalism attributable directly to technological advancement.
Likewise, the invention and proliferation of streaming services and digital content platforms has deeply transformed production, distribution and audience behavior within the film and television industry. Netflix, for example, which started out in 1997 as a DVD rental-by-mail service, grew to become one of the largest video distribution networks on the planet. Meanwhile, the approximately 165,000 US DVD-rental jobs that existed twenty-some odd years ago have now all-but-completely disappeared.
Along similar lines, recent innovations in information technology have nothing-short-of revolutionized the travel and hospitality industry, enabling consumers to book flights, accommodations, and experiences themselves, online. As well, as a result of online shopping opportunities made possible by the internet, the brick-and-mortar stores and traditional retail chains of yesteryear have taken a huge hit. Traditional landline telephone services have all but disappeared.
To be sure, innovation which leads to the destruction of jobs and old ways of doing things is not new. For example, in the late 1800s and early 1900s, the US employed an estimated 109,000 carriage and harness makers, 238,000 blacksmiths, and an abundance of other workers tasked with operating and maintaining canals, taking care of mules and horses, and building and maintaining buggies and carriages. By way of contrast, today, thanks to advances in transportation technology, virtually all of those jobs are obsolete.
Along these same lines, in 1920, prior to the rise of the automobile and air travel, about 2% of the American population of then-just-over 100,000,000 earned their paychecks working for railroads. Subsequently, as automobiles, highways and airplanes were invented, associated production and logistical support systems were developed, and infrastructure was built, fresh new opportunities were created. At the same time, something on the order of 2,000,000 railroad jobs and their corresponding traditions and practices were destroyed. Thus today, only about .04% of today’s population of about 336,000,000 are railroad employees (about 155,000 jobs).
In his influential book Capitalism, Socialism, and Democracy (1942), Joseph Schumpeter coined the term “creative destruction” for this phenomenon. Creative destruction occurs when new technologies, products, and business and social models emerge, leading to the displacement or obsolescence of existing ones. He thought then, as I do now, that it is overall neither a “good” nor a “bad” thing, but rather simply an unalterable fact of life in a capitalistic society. It exists because, in a sense, a capitalistic economy is a continual process of investment and creation, on one hand, and disinvestment and destruction, on the other, both brought on by inexorable technological and social change.
But while in the big picture creative destruction may be neither good nor bad, it does present people throughout society with a perpetual and often unavoidable struggle to adapt to change. Capital investment builds a physical landscape and set of social conditions appropriate to its own set of circumstances at one point in time, only to have to disinvest and effectively destroy them, usually in the course of a crisis, at a subsequent point in time.
The aggregate outcomes of the actions taken by individuals and groups to cope with this struggle potentially destroy traditions, social norms, values, conventions, and institutions, as well as jobs.
Take for instance, privacy. Advances in surveillance technologies have laid asunder traditional rights of privacy. People can no longer share only the information they want to share with whom they choose. The collection of vast amounts of personal data have made it almost impossible not to share more than we want to share. For far more than a few individuals this makes it difficult to navigate a world where their personal information is constantly at risk of being exposed or misused.
Similarly, mental health can easily become collateral damage to creative destruction. The constant connectivity and pressure to keep up with fast-paced, technologically-driven change contributes to stress, anxiety, and burnout, all-to-frequently affecting individuals’ health and interfering with their ability to live normal, healthy lives.
Rapid technological progress can also destroy the conditions conducive to healthy human relationships, especially if and when increased reliance on digital communication contributes to social isolation and the decline of face-to-face interactions in the same physical space. More than a few people now find it challenging to maintain meaningful connections and relationships in today’s fast-paced, digitally-focused environment.
The difficulties of overcoming these and other challenges raised by the destructive aspects of faced-paced technological progress are only heightened by the high-speed flow of information through various channels, such as social media and news outlets, which can easily lead to information overload. More than a few individuals today struggle to filter and process the vast amount of data encountered on a daily basis, resulting in palpable stress, confusion, and frustration.
Addressing the rapid rate of change brought on by creative destruction requires proactive and adaptive strategies at both the individual and collective levels. There are a number of ways to navigate and cope with this.
One is to prioritize continuous learning and skill development. This might involve acquiring new technical skills, improving digital literacy, staying informed about emerging technologies and industry trends, or any of a wide range of other things. It is less important exactly what the learning is about, and far more important to keep on learning (and doing) something.
One strategy is to consciously embrace a growth mindset. A willingness to learn, adapt and embrace challenges is vital for purposes of cultivating this. It requires variation in circumstances from time to time, some of which contain challenges and enough freedom to make mistakes from which to learn in responding to some of them. The benefits include improved abilities to navigate uncertainty and thrive in a rapidly changing environment. Emphasizing resilience, problem-solving, and creativity can also foster a positive attitude towards change and innovation.
Building social and professional networks can help a great deal. I’ve found that the strong social networks in the boating community provide valuable support, resources, and opportunities to help navigate the maritime world. While the maritime world is definitely somewhat unique, networking with peers, mentors, and industry professionals can facilitate knowledge sharing, collaboration, and advancement in pretty much any walk of life.
From a public policy perspective, it is important to strive to ensure that technological innovation benefits all members of society, including marginalized or underserved populations. For far too many people in America today, the destructive aspect of creative destruction has taken the form of widening the digital divide. Policies and programs designed to promote diversity and inclusion in the tech industry could help to avoid as much undue destruction as possible for disenfranchised Americans, as could advocating for equitable access to technology and digital resources, and addressing issues of digital divide and digital literacy.
Encouraging civic engagement and participation can also empower communities and groups to shape their own experience of technological development and advocate for policies that promote the common good. Engaging in discussions about the ethical, social, and environmental implications of technological progress can help communities make informed decisions and influence public policy. Educating citizens about responsible digital citizenship, advocating for transparent and accountable tech companies, and supporting initiatives that promote ethical tech development can also help communities and groups to cope with and adapt to the destructive side of technological progress.
By adopting such strategies as these, individuals, communities and groups can better navigate the rapid rate of change brought on by technological advancement. They can help to harness the opportunities brought by innovation while mitigating the potential risks and challenges associated with its destructive side. Collaboration, adaptability, and a commitment to inclusive and responsible tech development are essential for building a future where technology serves the needs and aspirations of people throughout society, and not merely the owners of capital.
Bill Bowen