Peter Drucker: Innovation Creates Wealth
on Thursday, January 5, 2012Peter Drucker Money Quotation saying to innovate is to create that special ability to actually manufacture money out of valuable ideas and new products. Peter Drucker said:
“Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth” — Peter Drucker
In this quote, Peter Drucker is defining innovation as being closely linked to entrepreneurship. He describes innovation as “the specific instrument of entrepreneurship”, meaning it is the key tool or mechanism that entrepreneurs use. Drucker then goes on to explain that innovation is “the act that endows resources with a new capacity to create wealth”.
In other words, innovation allows resources (such as capital, materials, labor etc.) to be used in new ways that generate economic value and profits. So in summary, Drucker is saying innovation is how entrepreneurs transform resources and business opportunities into wealth creation through new approaches, ideas or technologies.
Birthday: November 19, 1909 – Death: November 11, 2005