Innovation Importance

Innovation is coming up with a new idea and turning it into an effective process, a new product or service. The implementation of creativity and innovation in business is likely to incorporate success and help you stand competitiveness in the market. Innovation can be referred to as something new or introduced differently and has impact on market or society.

Organizations need development first to keep presence in the market, and second to be competitive. There are a lot reasons why you need innovation in your business. A successful business model won 't be developed if you have a walking dead organization, meaning to have a stagnated business that does not embrace change and refuse or don 't know how to let creativity breath come in.

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A lot of scientific studies have been carried by researchers to understand innovation process and how can Innovation Impact Enterprises? They gone through importance of innovation for businesses and investigated the implementation of innovation in different models and measurement of performance.

With the new challenges of globalization and open markets, competition toughens considerably and need for change is becoming more crucial. A recently published study that could be found here (http://www.ibimapublishing.com/journals/JIBBP/2012/245013/245013.html) carried by researchers from a Faculty of Management and Economics in Czech Republic has investigated this defy and noticed how Czech business companies "assign big importance to both inner and outer innovation."

The effective innovation process is something done strategically based on creative thinking and innovation strategy. Unlike the invention process that starts by problem and goes for solutions, effective innovation can start by supposing a solution and looks what problem it solves.

Innovation and

They also stressed on the importance of government as well as "Financial institutions and venture capitalists... due to the role that finances play in innovative activities."

Innovation and Knowledge

One of the matters that should not be overlooked in innovation is relation between knowledge and innovation. Researchers focused that "knowledge and expertise are transferred serve as both a source for, and stimulus to, innovation". So, effective and true innovation is led by knowledge. "The transfer of knowledge from universities to firms or from MNEs to their national branches was one of the better-known knowledge transfer linkages identified" the study confirms.

Measuring Innovation

Innovation is believed to be a generator of growth and success for businesses. As stated in this research "relation between innovation and performance provide evidence that this relation is positive". Yet, measuring innovation results and their impact has not been something easy. It is something done based on different metrics. "Measuring innovation should be carried out effectively, efficiently (must bring relevant information to the corporate management) and economically (must be done at a reasonable cost)" as stated by the mentioned