A Quote by Clayton M. Christensen

Efficiency innovations provide return on investment in 12-18 months. Empowering innovations take 5-10 years to yield a return. We have ample capital - oceans of capital - that is being reinvested into efficiency innovation.

Clayton M. Christensen

Quote Topics

Ample Being Capital Efficiency Empowering Innovation Innovations Investment Months Oceans Provide Return Return On Investment Take Years Yield

Quote Author

Clayton M. Christensen
American - Author
Born: April 6, 1952

There are three types of innovations that affect jobs and capital: empowering innovations, sustaining innovations and efficiency innovations.

Clayton M. Christensen

Empowering innovations require long-term investments, which tie up capital for years and years. So companies are using capital to create more capital, and consequently, the world is awash in capital, but the innovations we need to advance aren't there.

Clayton M. Christensen

Efficiency innovations arise in industries that already exist. They provide existing goods and services at much lower costs. They are not empowering. Efficiency innovators become the low cost providers within an existing framework.

Clayton M. Christensen

The financial doctrines so zealously followed by American companies might help optimize capital when it is scarce. But capital is abundant. If we are to see our economy really grow, we need to encourage migratory capital to become productive capital - capital invested for the long-term in empowering innovations.

Clayton M. Christensen

The financial capital is being concentrated by corporations, institutional investors, and even our pension funds, and being reinvested in companies that repeat this process because it provides the highest return on that financial capital.

Paul Hawken

Disruptive innovations create jobs, efficiency innovations destroy them.

Clayton Christensen

Efficiency innovations are a natural part of the economic cycle, but these are the innovations that streamline process and actually reduce the number of available jobs.

Clayton M. Christensen

Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.

Charlie Munger

The advantage of the free market system is that people invest their capital, they create jobs by investing their capital, and hopefully they get a return on that investment. I don't think there's anything wrong with good old American capitalism.

Steve Stivers

In a healthy economy, empowering, sustaining and efficiency innovations operate in balance. A healthy economy creates and sustains more jobs before squeezing out inefficiencies.

Clayton M. Christensen

In the post-industrial economy, ideas and great minds often provide far greater return on investment than any other resources or capital investments.

Marvin Ammori

Because in the New Normal you are more worried about the return of your capital, not return on your capital.

Mohamed El-Erian

To focus capital and entrepreneurship into empowering innovation, we should change is the capital gains tax rate. We would be better served by a regressive tax rate, that would become progressively smaller the longer the investment is held.

Clayton M. Christensen

Because these firms listened to their customers, invested aggressively in new technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.

Clayton Christensen

In order to access private capital, you have to provide competitive return on investment. In order to give competitive returns to investors, you've got to operate on a profitable basis and be thinking of yourself as a business.

Pierre Omidyar

If I am right in supposing it to be comparatively easy to make capital-goods so abundant that the marginal efficiency of capital is zero, this may be the most sensible way of gradually getting rid of many of the objectionable features of capitalism.

John Maynard Keynes

A Quote by Clayton M. Christensen

Quote Topics

Quote Author

Related Quotes

Related Authors