THE WHEEL OF INNOVATION

The wheel of innovation refers to the concept whereby those very same forces that create an innovative hot spot also eventually provide the seeds for the hot spot's decline. An innovative hot spot creates econo mic prosperity. An increasing demand for economic entitlements within the hot spot creates negative structure that is not conducive to later entrepreneurs or new ventures. This tends to put a damper on further innovative activity within the maturing hot spot. This rags-to-riches- to-rags evolution of innovation hot spots is termed the wheel of innov ation. This paper examines the phenomenon from a historical perspectiv e and provide insights on how a country and a region can continue to s ucceed without falling victim to the phenomenon.