Ideally, the three innovations operate in a recurring circle. Empowering innovations are essential for growth because they create new consumption. As long as empowering innovations create more jobs than efficiency innovations eliminate, and as long as the capital that efficiency innovations liberate is invested back into empowering innovations, we keep recessions at bay. The dials on these three innovations are sensitive. But when they are set correctly, the economy is a magnificent machine. Clayton M. Christensen
It’s very hard to pick up a defining quote, because it’s that good – just read the entire article. Basically, in the current economic crisis more consumption is bad, long-term investments are good; but nobody does it because short-term investment seems so profitable. Also in the model: why outsourcing is a solution to the wrong problem.