Wednesday, April 25, 2012

Competing on Design

When we introduce a product, we do so at the specialty level, serving the wealthy who are in a position to be early adopters (and in effect guinea pigs).  It does not take much to be an innovator, our products are unique, not very well executed as ideas, terribly expensive as far as they go as products, and take a while to get.   


One of the reason for all of this is because we use what the Austrian call the roundabout means of production.  Just so... such means appear so to the academic, but in reality they are the most direct means of patch-working odds and ends of excess production capacity in order that the new item may be introduced.  It happens to be the most direct means given the resources available to the entrpreneur...  in time, through hegelian dialectical materialistic action, the innovation, once accepted, attracts the conservators to routinize and rationalize the production and distribution.  In time, in the measure there is lack of intellectual property rights, good things will happen:  what was once only for the rich becomes available to everyone, the item is available as it  we more better cheaper faster of the item.

von Mises says

"Luxury is the roadmaker of progress." 


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