Critical Evaluation of Network Diversity and Benefits in Innovation Essay

Critical Evaluation of profit Diversity and Benefits in Innovation - Essay ExampleNetwork structure Woolcock and Narayan (2000) develop their considerations, considering social ceiling as a potential bridge among policymakers, practitioners and scholars. In case people generate a positive aura of cooperation, they atomic number 18 able to continue their relations in a favorable atmosphere. Social crown is a social bond among distinct networks. The principal(prenominal) terminus for people in terms of any social network is to find and sustain the development and support of their social activities (Fukuyama, 1995). The sentiments of socializing and economic performance atomic number 18 closely related and there is a need to anchor bounds between these two concepts. Under conditions of networks creation, people are able to develop different behavioral templates and be focused on their mutual cooperation and common goals succeeding (Lee, 2009). Social interaction can be conside red from a different prospect, when closed networks are acting against other social groups. For example, activities of mafias and different aspects of corruption can be positioned as negative outcomes of closed networks. Shumpeter- social capital and resource combinations Social capital for Shumpeter is activity of people, directed on innovations development. Moreover, the scientist was non focused on the goal of enrichment as a final goal of innovations implementation. The goal of commercialization may not always correlate with the goal of innovations (Fukuyama, 1995). . Different spheres of human activities are connected with innovations and it is hard to claim that the final goal for social capital activities is enrichment. Social capital combines its efforts in order to develop its knowledge, to develop and introduce more valuable and innovative policies in the field of activity (Fukuyama, 1995). He was also focused on combinatory activity, when the members of social groups act ed like entrepreneurs, while performing the entrepreneurial function. In these terms Schumpeter considered possible ways for innovations and long-term economic change. Schumpeter was focused on a dynamic approach for economic development, because only through innovations it was possible to reach success. Mutual interaction of entrepreneurs and the combination of their efforts in the field of innovations could result in creation of new opportunities (Schumpeter, 1970). At first, Schumpeter was focused on the individual role of the entrepreneur, which should be innovative and motivate the team of an entrepreneur to creation of new ideas. The main role of the entrepreneur was to correctly combine innovative practices and ideas of the members of his team. Further on, Schumpeter was focused on the important role of the team as the leading moving king of the companys progress. The entrepreneur performed a function of a new combinations manager (Schumpeter, 1970). . Innovations of a socia l group are considered to be a social occasion practice, while the entrepreneur should constantly be focused on new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on (Schumpeter 1970, p. 132). A large corporations is working in the name of a common goal. Concept of social capital-diversity In the modern globalized world the limits of the society are blurred. Still, it is evident that the concept of social c