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Up in the air and "creative destruction" of Schumpeter

"Companies rising and falling Would unleash innovation and in the end make the economy stronger"
The rise and fall business unleashes innovation and ultimately makes the economy stronger

Joseph Schumpeter

The Newly Released Up in the Air (Jason Reitman, 2009) describes the peaceful life of Ryan Bingham, played by George Clooney . Their job is to travel from city to city firing employees whose companies do not want to do it through their own managers, either because they are cowards because they do not want to deal with aggressive reaction potential of their now former employees. In his years of experience, Ryan has become quite efficient in their work and study techniques of persuasion to get employees to accept this fact, albeit not an unlikely host, at least if with some resignation and in some cases "dignity."

The case gets complicated when a new employee to the company (Natalie Keener , played by Anna Kendrick ) with innovative ideas about improving the efficiency and productivity of the company. The solution? Use technological tools such as video conferences for layoffs. Although this process can improve the productivity of the company, Ryan disrupts plans for three reasons which he considers essential to its existence. The first is a woman, Alex Goran ( Vera Farmiga ) , he met one of his travels and because of his work also has to travel constantly, with the possibility of match in some cities and can be seen. The second is a personal goal related to travel: Ryan wants to be the seventh person in the world to reach 10 million miles and achieve other benefits that a plane carrying his name. The third is intertwined with the other two and is a premise of the film: travel is the natural state of Ryan, constantly moving from city to city to enjoy the privilege of using your frequent flyer and travel experience is the way he feels in control of your life.

Of course, the film raises other issues and personally I think is very interesting and commendable. However, for the purpose of this paper is necessary to focus on just one of the issues raised by the film and relate to the concept of "creation destructive '. In the first instance, it is important to raise the definition of that term.

The ' destructive creation ' is a theory popularized by economist Joseph Schumpeter in which posits that an radical innovation (good or service can generate a new category) produces the goods or services prior to this are obsolete and therefore reduce their consumption dramatically. A classic example is that of audio devices. One of the first used on a large scale was the vinyl record that accompanied the tape later. With the advent of the Compact Disc (CD), sales of cassettes and vinyl records were reduced to minimal levels and now, at least in the case of disks, their few consumers do so as part of a habit or nostalgia collector . But this does not end there. Subsequently, there is the making MP3 CD is outdated and current consumption is also declining. This case can also be applied to the video and its players (VHS or Beta, Laser Disc, DVD and Blue Ray now) as well as computers. Obviously this process is not limited only to electronics. What happens is that in this sector this process is carried out at a dizzying pace.

Which raises this theory is that the ' destructive creation ' is inherent in the production process and is part of the development of any product. This is not only related to elements of the product's functionality, but also with elements of marketing influencing the "destruction" of a product. For example, a cell phone that has a camera number of megapixels. When a new cell to enhance the ability of megapixels, consumers feel the urge to buy this new product while providing functions are practically the same old model. This is what is known as incremental innovation (amending a portion of a good or service) and also generates the obsolescence of the previous product. In this case, an effective marketing strategy can convince consumers to purchase a product that really do not need and because "destroy" the last.

For the film, Ryan becomes the victim of a radical innovation. video conferencing threatens their way of life and may in future become another unemployed similar to those he was responsible for announcing his dismissal. The issue here is complicated because what is being "destroyed" is a human being or at least the reason for their existence. Obviously in a metaphorical sense, but it is still a process or production system in a company that becomes obsolete. The point here is that the 'creative destruction' does not raise ethical concerns. It is not good or bad in itself; is simply a process that can lead to some benefits but also harm others. One need only look at Kodak and its near-collapse as a result of the rise of digital cameras. Consumers have been highly benefited by cameras whose pictures can edit and modify as they wish without having to buy a roll of film, but many companies failed to comply with this innovation became obsolete and disappeared. In other words were "destroyed."

could speak other films that raise the same issue but with a different approach. Some do so explicitly and Tidal Blade Runner, I Robot, Matrix and Terminator (replicants, robots and machines such as radical innovation processes, which in the case of the latter two make human beings obsolete, this time in literal sense). Others do it subtly and with a much more tangential. However, it is possible to find traces of this theory and its approaches (or is it perhaps the Godfather, Vito Corleone, was not made obsolete by refusing to link the new drug business and therefore their destruction was necessary.) The fact is that the 'creative destruction' is an issue that raises questions about its transformation process and how it can be taken advantage of its benefits while minimizing its negative effects. Finally, an element of the tape and that is also part of this theory is that the motivation for him to be obsolete was not a deliberate decision in order to harm you. Simply, he was a collateral victim of a process of radical innovation that in turn generated a process of "creative destruction."