Good-bye to determinism: the circle of innovation

An argument, lasting from the 19th century through the present day, has to do with whether social changes create technological innovation ('technological determinism') or vice versa ('social determinism'). Advocates of either argued that both could not be true. Modern interactive information technology allows us to see that neither view is fully correct, and that in fact there is full circular feedback from social and organisational effects to technological innovation and back again. This paper offers instances of the Circle of Innovation. It analyses and attempts to resolve the nuances of both determinist positions. It ties a third determinist tradition, linguistic determinism, to technology management practice. Implications of this theoretical discussion for research, for public policy, and for business include the need for renewed dialogue between economics and sociology; the need for a new embrace of nonlinear analysis; and the potential for greater profits from new looks at technology assessment and market segmentation.