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Innovation and the Role of Habits: A Conceptual Analysis

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  • Donatella Cavagnoli

    (School of Economics, La Trobe University)

Abstract

In this paper I explore the concept of innovation. The aim is to bring to the fore the importance of learned habits on the motivation to innovate. Innovation is a learning process which results in a new product, a new process, a new movement, a new organisation or a new source of raw materials. It arises out of scientific activity (e.g. Research and Development), individual invention (e.g. garage or computer inventor), group strategy (e.g. future search meetings) or exploration of new environments (e.g. mineral exploration). However, innovation requires the input of innovative individuals within any of the above contexts. Individuals learn within a frame of reference created by their education and by their social and organisational systems of rewards. This frame reflects how habits of thought and of behaviour are passed on and perpetuated, and how information, skills and the motivation to innovate evolve. Habits however, embody a double-edged outcome. Habits can lead to innovation, habits can also hinder innovation. This paper identifies this double-edged outcome and examines the gap in the innovation literature on the importance of fostering the individuals psychological motivation (or habit) to innovate. It seeks to provide a theoretical framework that enables a link to be drawn between management innovation, industrial relations and education policies.

Suggested Citation

  • Donatella Cavagnoli, 2008. "Innovation and the Role of Habits: A Conceptual Analysis," Working Papers 2008.03, School of Economics, La Trobe University.
    • Handle: RePEc:trb:wpaper:2008.03
    as

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    References listed on IDEAS

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    1. Geoffrey M. Hodgson & Thorbjørn Knudsen, 2008. "The Complex Evolution of a Simple Traffic Convention: the Functions and Implications of Habit," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Institutional Change and Economic Behaviour, chapter 9, pages 178-199, Palgrave Macmillan.
    2. Brewster, Chris & Mayne, Lesley & Tregaskis, Olga, 1997. "Flexible working in Europe," Journal of World Business, Elsevier, vol. 32(2), pages 133-151, July.
    3. Hirschman, Albert O., 1985. "Against Parsimony: Three Easy Ways of Complicating some Categories of Economic Discourse," Economics and Philosophy, Cambridge University Press, vol. 1(1), pages 7-21, April.
    4. Lynn Mytelka, 2004. "Catching up in new wave technologies," Oxford Development Studies, Taylor & Francis Journals, vol. 32(3), pages 389-405.
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