Through illustrations to back up this statement, the article shows how viable this notion by Schumpeter is. decades after its realisation.
Emirates Airline is the national flight company of the emirates of Dubai that was established in 1985. The airline is located at Dubai International Airport and it also serves the United Arab Emirates. With regard to the number of passengers ferried, Emirates Airline is the largest airline globally and the fastest developing with expansions across all continents. The fleet largely comprises of Airbus and Boeing crafts. The Airbus A830 is the prime passenger carrier in the fleet. The flights cover various destinations around the world such as: Middle East, Africa, South Asia, North America, Europe and Australasia. The air shipping segment serves over 40 terminuses (Centre for Aviation).
The airline industry in the Middle East, like anywhere else is subject to cyclical fluxes. Emirates Airline has experienced various hurdles and overcome them to gain its current standing. Technological and economical innovation are a part of the strategies assumed by the airline in a bid to stay ahead of the competition.
Joseph Schumpeter acknowledged innovation as the critical dimension of economic development. According to Joseph, market power and entrepreneurial activities rely on innovation for them to flourish. The short lifespan of certain technologies is the catalyst that provokes development in various industrial fields for it creates a temporary monopoly in the market that the rivals compete to outdo. He believed that the innovation process was driven by major firms that spared no expense in research and development undertakings (McGraw 2007, pp. 4-6). The innovation theory formulated by Joseph has in varied forms been implemented by Emirates Airline in its brand positioning and market entry approaches.