...I think the theory of disruption quite accurately explains what happened to the investment banks on Wall Street...It really is a case where one class of institutions disrupted another class of institutions—and they’ve all paid a price now.
...
Q. Now, that raises a very interesting point. I’ve heard some commentators making a distinction between technological innovation, which they see as generally beneficial to the economy, and innovation in the financial markets, which may not always be good—and they point to the recent problems in the financial markets as an illustration of that. What do you think about that line of reasoning? Are there some markets where innovation is better than others?
A. No. I think innovation is universally good, but there are some markets where the public good isn’t necessarily served by capitalism...But there are big portions of financial services that have benefited greatly by disruptive innovation...I think anybody who looks at the history of financial services would say that innovation has been a blessing.(2009) http://sloanreview.mit.edu/article/good-days-for-disruptors/
...
Q. Now, that raises a very interesting point. I’ve heard some commentators making a distinction between technological innovation, which they see as generally beneficial to the economy, and innovation in the financial markets, which may not always be good—and they point to the recent problems in the financial markets as an illustration of that. What do you think about that line of reasoning? Are there some markets where innovation is better than others?
A. No. I think innovation is universally good, but there are some markets where the public good isn’t necessarily served by capitalism...But there are big portions of financial services that have benefited greatly by disruptive innovation...I think anybody who looks at the history of financial services would say that innovation has been a blessing.(2009) http://sloanreview.mit.edu/article/good-days-for-disruptors/
