Innovation and Entrepreneurship in the Global Economy

Innovation and Entrepreneurship in the Global Economy

Introduction

The Oxford Handbook of Innovation describes innovation as the putting into practice of inventions. Innovation can include new or breakthrough techniques which may relate to a product, technology or organizations. With innovation techniques and ideas it would help us to manage business in new effective ways.

The different types of innovation related to a product, processes, ideas or technology etc. are:

• Breakthrough: Taking the example of iPhone which a new innovative product when it was first launched. It was unique, simple and provided new technology to the users.

• Sustaining: It is related to the continuous improvement of the current product, to provide more value and functionality to the people. For example Apple comes up with different version of iPhones every year.

• New Market: it is redefining the existing product in an innovative way so that it can be used for new customers. For example Arm & Hammer used to sell baking soda, but later the same baking soda was sold as a deodorizer. This new functionality made this a multi- purpose product.

• Disruptive: a product or service which initially in the market, which does not have a strong foothold in the market. But afterwards, it moves up in the market and replaces an existing product or services. For example online movie streaming services such as Netflix, HBO go etc. have made destroyed the market of DVDs and Blu-ray players.

An entrepreneur is a person who starts a business or enterprise by taking calculated risks and also manages it. Entrepreneurship integrates the use of resources in a new and efficient manner. An entrepreneur is capable of transforming an economic constraint area into a higher produ...

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... established institutions: Due to the recession in the economy, has led people to lose confidence in banks and other financial institutions. It would lead to flourishing of new small innovative firms.

• Entrepreneurial collaboration: An entrepreneurial collaboration on a global scale would help to countries to collaborate on innovation ideas. For example establishing Technology incubators or technology parks etc.

• Development of environment and sustainable engineering technologies: An increasing awareness about protecting the world would help to encourage the invention of products and services that would assist in fulfilling of sustainable engineering technologies.

• Shifting business environment: Business paradigm is changing; it is changing to aid the fast growing market. Therefore, entrepreneur and innovation are starting to increase around the world.