After several decades of relentless technology revolutions, advanced digital societies are at the inflection point of how we (as people) relate to technology. There are anxious discussions on whether advances in machine learning and artificial intelligence will replace humans, or whether technology is taking away our humanity.

The pursuit of technology innovations to create business value is often the starting point for many entrepreneurs and innovative leaders. Often, innovations introduced by the few can create havoc and disruptions, and in some cases, re-configure value chains such that many jobs and companies are displaced, creating anxiety for the actors affected. Restorative Innovation, on the other hand, is the complete opposite, with its focus on the both delivering the promise of value to the consumer and doing good for the society without displacing incumbents nor jobs.

A few key traits and characteristics of an entrepreneurial leader that embraces Restorative Innovation are those who embody the spirit of empathy and are driven by a noble mission to contribute to the betterment of society. This key principle captures the teachings of Laozi (老子), and the concept of “Ren” (仁).

Knowing that it is not a zero-sum innovation, a Restorative Innovation leader is more concerned with the value generated through the adoption of his/her innovation, which aims to benefit humanity and not destroy or disrupt the existing value chain. A Restorative Innovation leader does not reject technology; it is about how to use technology to enhance people’s connection to others, to society, and to one’s true self. Central to this model is that it also creates intrinsic business value as it proliferates, and does not require philanthropy for the innovation to be sustainable.

A common example would be the proliferation of convenient delivery service of fresh vegetarian food ingredients to households. The more users adopt this innovation, it lowers the overall cost to each customer due to lowering supply chain cost (economies of scale), yet it does not disrupt existing value chain. Restorative Innovation is in harmony – and the values of simplicity and humility are embodied in the innovation.

Restorative Innovation is a unifying innovation principle to not only guide founders in their entrepreneurial journey but to inspire and positively influence how innovation & entrepreneurship is viewed by the general public. It does not aim to be the new dominant paradigm. If it becomes the new paradigm, it is the natural course of the value being appreciated and adopted by the users.

The term Restorative Innovation is first coined by Professor Virginia Cha, having observed the patterns of innovation introduced by entrepreneurs.

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