Not All That Disrupts is Good, and Not All That is Good Disrupts
Wednesday, August 22, 2012

Are our best efforts to bring the electric vehicle to market having the right effect? It’s important to remember that not all disruptive innovation is good, and not all good innovation is disruptive.
Electric car maker Fisker Automotive just recalled all 2,400 of
its plug-in hybrid cars; Electric Vehicle battery maker A123 is being acquired by Chinese parts supplier Wanxiang
Group; Tesla's CEO says the next six months will decide
their fate. Are our best efforts to bring the electric vehicle
to market having the right effect?
People are obsessed with
disruptive innovation these days - especially when going after the
social and environmental challenges of sustainability. These
problems are too big for regular innovation. Nope, they need
disruptive innovation. Believe this, though, and you could go
backwards as easily as forwards.
That's because not all disruptive innovation is good, and not all
good innovation is disruptive.
As defined by Clayton Christensen, the Harvard Business School
professor who coined the term, disruptive innovations have the
ability to, well, disrupt. Think automobile to horse-and-carriage;
electric light to gas lamp; transistor to vacuum tube. They
overturn the existing industrial order, topple incumbents, and
sweep aside old technologies.
Good innovations represent new ways of doing things that achieve
our particular goals. Think cures for disease, food for famine. The
goal for electric vehicles is reducing carbon emissions, which
fights climate change.
Back to our obsession: Do we really need disruptive innovation to
achieve our goals? Is it necessary to reduce carbon emissions by
overturning the auto industry, toppling incumbents, and sweeping
aside old technologies? Or, taking into account the stumbles
of Fisker and others, is it even possible?
Answering
that requires exploring how different an electric vehicle actually
is from traditional internal combustion vehicles. Aside from the
power train (swapping gas and engine for battery and motor,
or both), the rest of the car barely changes. Same with how it
gets built, how it gets sold and, as importantly, how it gets
used.
So why are we funding upstart car makers? Is it to overthrow the
existing industry (which, by the way, we just bailed out)? Dressing
electric vehicles up like a disruptive innovation may cause more
harm than good, since it distracts us from the policy choices
that could raise mileage and emissions standards without disrupting
much of anything.
The 1950's post-war dream of better living through science came
with white knights looking like lab-coated corporate or NASA
scientists. That's been replaced by the dream of disruptive
innovation and saviors looking like Silicon Valley
entrepreneurs. In both cases, however, the dream lets us avoid the
hard work of forging policies that could achieve our goals quickly
and more effectively. Policies that would drive regular old
innovation.
Andrew Hargadon is the Charles J. Soderquist Chair in Entrepreneurship and Professor of Technology Management at the Graduate School of Management at University of California, Davis. Hargadon's research focuses on the effective management of innovation, particularly sustainable innovation, and he is author of numerous articles, essays, and the book How Breakthroughs Happen: The Surprising Truth About How Companies Innovate (Harvard Business School Press).
