IT IS A TRUISM that innovation is a buzzword and everyone wants it. But why? There is a single measure for innovation: what is the value it creates for society at large, and perhaps incidentally, for individuals and firms? Let us apply this metric to things of the past few decades that are accepted as highly innovative: the computer, certain drugs and medical procedures, the jet engine, the ocean-going container, the smartphone, search engines, social media, e-commerce, space exploration, air-conditioning and the internet. Of course, that is not a comprehensive list of innovations, merely a random one.
Do these things create value? Apparently, they do. Look at the current market valuation of companies like Apple, Alphabet, Amazon, Alibaba, Baidu, Microsoft, Tencent, etcetera. Now look at their offerings. Clearly, people like…
