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2009 Vol.3
Radical Innovation and Its Present-Day Significance


The consistent message underlying the arguments made in this article is that we are facing a significant, fundamental turning point that distinguishes the present period from others in terms of technological, economic, social and institutional aspects. In such a transitional period, we should not be occupied merely with strategies against changes occurring at the level of individual companies, management, but rather, seeing through them, should understand the structure of epoch-making changes macroscopically. In this context, this article regards a fundamental, technological or economic change identified from such a standpoint as radical innovation.
However, such changes do not emerge automatically. Therefore, this article highlights the role of entrepreneurs “Ÿ a voluntary and active driving force behind such changes “Ÿ and emphasizes that the manner in which entrepreneurs actually make decisions and take concrete actions will be key for leading the radically changing world and becoming dominant in the coming period. The turning point discussed in this article is interpreted as a transition from the fourth to fifth wave in Kondratiev Long Waves, which is discussed in the study of business cycles and is mainly characterized by technological innovation.The present period faces sluggishness in market demand and in technology, along with problems regarding energy which is a major factor in the fourth Kondratiev. Therefore, new technology and the formation of a new market framework have become necessary. Consequently, the economy has slowed down, and a number of companies have fallen into bankruptcy. This article not only discusses responses to these problems, but also stresses the necessity of timely, institutional and social supplementary measures including strong government promotions toward new changes.