Innovation and Entrepreneurship: Summary Review

This is a summary review of Innovation and Entrepreneurship containing key details about the book.

What is Innovation and Entrepreneurship About?

Innovation and Entrepreneurship presents innovation and entrepreneurship as a purposeful and systematic discipline. It clearly explains and analyzes the challenges and opportunities of America's new entrepreneurial economy.

Who is the author of Innovation and Entrepreneurship?

Peter Ferdinand Drucker was an Austrian-American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.

How long is Innovation and Entrepreneurship?

  • Print length: 288 pages

What genre is Innovation and Entrepreneurship?

Business, Entrepreneurship, Nonfiction

What are good quotes from Innovation and Entrepreneurship?

“This defines entrepreneur and entrepreneurship - the entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”

“Entrepreneurship rests on a theory of economy and society. The theory sees change as normal and indeed as healthy. And it sees the major task in society - and especially in the economy - as doing something different rather than doing better what is already being done. That is basically what Say, two hundred years ago, meant when he coined the term entrepreneur. It was intended as a manifesto and as a declaration of dissent: the entrepreneur upsets and disorganizes. As Joseph Schumpeter formulated it, his task is "creative destruction.”

“Entrepreneurship is "risky" mainly because so few of the so-called entrepreneurs know what they are doing.”

“The companies that refused to make hard choices, or refused to admit that anything much was happening, fared badly. If they survive, it is only because their respective governments will not let them go under.”

“The husband and wife who open another delicatessen store or another Mexican restaurant in the American suburb surely take a risk. But are they entrepreneurs? All they do is what has been done many times before. They gamble on the increasing popularity of eating out in their area, but create neither a new satisfaction nor new consumer demand. Seen under this perspective they are surely not entrepreneurs even though theirs is a new venture. McDonald’s, however, was entrepreneurship. It did not invent anything, to be sure. Its final product was what any decent American restaurant had produced years ago. But by applying management concepts and management techniques (asking, What is “value” to the customer?), standardizing the “product,” designing process and tools, and by basing training on the analysis of the work to be done and then setting the standards it required, McDonald’s both drastically upgraded the yield from resources, and created a new market and a new customer. This is entrepreneurship.”

“The people who work within these industries or public services know that there are basic flaws. But they are almost forced to ignore them and to concentrate instead on patching here, improving there, fighting the fire or caulking that crack. They are thus unable to take the innovation seriously, let alone to try to compete with it. They do not, as a rule, even notice it until it has grown so big as to encroach on their industry or service, by which time it has become irreversible. In the meantime, the innovators have the field to themselves.”

“Entrepreneurs, by definition, shift resources from areas of low productivity and yield to areas of higher productivity and yield. Of course, there is a risk they may not succeed. But if they are even moderately successful, the returns should be more than adequate to offset whatever risk there might be.”

“And it is change that always provides the opportunity for the new and different. Systematic innovation therefore consists in the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic or social innovation.”

“3. An innovation, to be effective, has to be simple and it has to be focused. It should do only one thing, otherwise, it confuses. If it is not simple, it won’t work. Everything new runs into trouble; if complicated, it cannot be repaired or fixed. All effective innovations are breathtakingly simple. Indeed, the greatest praise an innovation can receive is for people to say: ‘This is obvious. Why didn’t I think of it?’ Even the innovation that creates new uses and new markets should be directed toward a specific, clear, designed application. It should be focused on a specific need that it satisfies, on a specific end result that it produces.”

“Entrepreneurs see change as the norm and as healthy. Usually, they do not bring about the change themselves. But – and this defines entrepreneur and entrepreneurship – the entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
“Entrepreneurship, then, is behavior rather than personality trait. And its foundation lies in concept and theory rather than in intuition.”

“4. Effective innovations start small. They are not grandiose. They try to do one specific thing. It may be to enable a moving vehicle to draw electric power while it runs along rails – the innovation that made possible the electric streetcar. Or it may be as elementary as putting the same number of matches into a matchbox (it used to be fifty), which made possible the automatic filling of matchboxes and gave the Swedish originators of the idea a world monopoly on matches for almost half a century. Grandiose ideas, plans that aim at ‘revolutionizing an industry’, are unlikely to work.”

― Peter Drucker, Innovation and Entrepreneurship

What are the chapters in Innovation and Entrepreneurship?

Chapter 1: Systematic Entrepreneurship
Chapter 2: Purposeful Innovation and the Seven Sources for Innovative Opportunity
Chapter 3: Source: The Unexpected
Chapter 4: Source: Incongruities
Chapter 5: Source: Process Need
Chapter 6: Source: Industry and Market Structure
Chapter 7: Source: Demographics
Chapter 8: Source: Changes in Perception
Chapter 9: Source: New Knowledge
Chapter 10: The Bright Idea
Chapter 11: Principles of Innovation
Chapter 12: Entrepreneurial Management
Chapter 13: The Entrepreneurial Business
Chapter 14: Entrepreneurial in the Service Institution
Chapter 15: The New Venture
Chapter 16: "Fustest with the Mostest"
Chapter 17: "Hit Them Where They Ain't "
Chapter 18: Ecological Niches
Chapter 19: Changing Values and Characteristics

* The summary points above have been sourced and summarized from the book, Amazon, and other online publishers. The editor of this summary review made every effort to maintain the accuracy and completeness of any information, including the quotes, chapters, insights, lessons, and key takeaways.

Chief Editor

Tal Gur is an impact-driven entrepreneur, author, and investor. After trading his daily grind for a life of his own daring design, he spent a decade pursuing 100 major life goals around the globe. His journey and most recent book, The Art of Fully Living - 1 Man, 10 Years, 100 Life Goals Around the World, has led him to found Elevate Society.

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