New Scientific Research Says: Sales People Actually Innovate

File in: Who'd-a-thunk it: In a recent new economics paper, Amar Bhide of Columbia University argues that it takes more than just scientists to innovate. In his paper, he argues that, in fact, innovation is a team sport. The recipe for real innovation and the reason why the US achieves consistently superior productivity is growth is not just that many of the world's best and brightest scientists are here, but also that world's most talented marketers and adventuresome consumers are as well.

The formula for success? Technology, sales, marketing, and the customer.

Bhide disputes the idea that share of graduates in science and technology or the proportion of Nobel prizes are leading indicators. Indeed, while US share in those areas has declined relative to Europe and Japan, our GDP per capita has not, suggesting that wealth creation has not been impacted. Instead of pure science, Bhide argues that it is the combination of technology with marketers ability to package products and consumers willingness to try new technologies that is the truly powerful combination.

This certainly fits with my own experience. America is full of early adopters, hobbyists, and technology enthusiasts of every kind. These early adopters form a powerful feedback loop with companies, adapting products and improving them in a rapid, iterative process. It's most visible in the consumer electronics space, where despite the dominance of big enterprises in Asia, many of the most game-changing innovations have been done in the US (think iPod and Tivo). I believe it is also true at the enterprise level, where many big trends in enterprise software have started here, including advanced planning and scheduling in manufacturing.

So what? For starters, if Bhide is right, it means that while you can ship specific development functions offshore, while you can import technological ideas, that does not mean that US companies will lose their competitive edge. Practically speaking, it means that large companies should be wary about conducting the kind of off-shoring that results in disconnection of research or development from marketing and sales. Innovation is a team sport. Teaming can be successful across continents and time zones, but it takes work.

For myself, this is a great day. As a lowly consultant with a mere economics degree, I have always felt a little intimidated by degree-wielding engineers. Now, not only can I claim that I am just as much an innovator as any engineer (with fancy academic proof to back it up) but also that my next ludicrously expensive electronic toy is not for fun, I'm just doing my patriotic duty.

*There is a very well written article about the paper and article about it in this week's Economist. (Registration & subscription required).