Arthur Diamond – Openness to Creative Destruction: Sustaining Innovative Dynamism

Arthur Diamond – Openness to Creative Destruction: Sustaining Innovative Dynamism

This book reminded me a bit of Wired cofounder Kevin Kelly’s What Technology Wants in its tech- and innovation-centric hyper-optimism. His optimism isn’t quite as sober as the Julian Simon, Deirdre McCloskey, or Hans Rosling variety, but Diamond’s enthusiasm is contagious. Readers interested in this subgenre might also like John Tamny’s The End of Work and Diamandis and Kotler’s Abundance: The Future Is Better Than You Think.

One useful contribution Diamond makes is a deep dive into just how disruptive new technologies are. For workers, the changes are often less severe than commonly thought. When cars replaced buggies, they still needed wheels, frames, and upholsteries, for example. Those workers’ skills did not become obsolete, though they did have to evolve. Many disruptive technologies take years or even decades for widespread adoption.

Ultimately, Diamond makes a culture-based argument for explaining technological progress. It takes more than research and development, or available capital for entrepreneurs. It takes a culture that approves of such things. People need to be willing to try something new and see if they like it or not. They need to have a certain audacity, or at least a positive view of it. People aren’t likely to give it a go if it makes them a pariah. Though Diamond openly admires Schumpeter—hence the phrase “creative destruction” in the title—ultimately his argument owes more to Joel Mokyr and Deirdre McCloskey.

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