Schumpeter and the Blue Ocean Strategy

Abstract

The purpose of this paper is to integrate and quantify the Blue Ocean Strategy for the business activities proposed by the Kim and Mauborge model and by Schumpeter´s competitive strategy. It analyzes the importance of innovation and scale economy in Colombia, based on information from 8.000 companies over a period of 12 years. This
study also emphasizes the importance of new product performance, new technologies, innovation, invention, scale economy and production cycles in companies, based on our empirical exercise and international trade and economy recent literature. The possibility of improving the performance of companies with strategies for new products and processes is vital for industry policies seeking new ways to help businesses foster
innovation. This paper analyzes how the Blue Ocean Strategy is particularly useful as a guide to help entrepreneurs achieve dynamic innovation. The empirical exercise documented is a sector analysis approach for company growth, considering contribution decomposition obtained by of the development of new products, markets, processes, raw materials used and reorganization through take-overs and fusions.