It’s official – creativity and innovation are crucial to a functioning economy and market. I’ve been reading The Best Book on the Market which is a primer on how a market economy works, and what is needed to maximise their effectiveness.
One of the interesting ideas was about price points and competition. The usual economist view is that the price usually settles around where the supply and demand curves meet. But one of the reasons you can’t always charge the lowest price to win all the work is the other factors which drive demand. Innovation and creativity are a key part of this because they not only generate ways to save costs, but they create new demand for what you are producing allowing you to ask for a premium price.
Taken one step further, innovation also creates demand where there was none previously. This broadens the market and makes it more efficient by expanding people’s options.
So go ahead and innovate, you’re helping everyone make more money!
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