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.
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
In the article “Difference Between ‘Invention’ and ‘Innovation’”, Tom Grasty claims that invention is creating a new thing, while innovation is making change and contributing something new based on existing things. I agree with him. “Invention” is to create something from nothing, and it emphasizes “the first”; “innovation” is to make something better. Moreover, since every company has different status and resources, “innovation” might not be the first one, but it could not be exactly the same. Another point is that we can distinguish inventions from their positive and negative impact. The positive one is like computer, which improves technology development; the negative one, like computer virus, destroys people’s data. However, “innovation”
Everett Rogers defines an innovation as “an idea, practice, or object that is perceived as new by an individual or other unit of adoption” (2003, 12...
Innovation, what is innovation? Innovation is the creation and implementation of new ideas, methods, or strategies that facilitate a process, add value, or improve quality (Tidd & Bessant, 2013). In fact, innovation is the reason for all the new amenities of today’s 21st century. Moreover, innovation has brought forth new perspectives and ideas that have inspired numerous of businesses to expand and improve their daily operations, increase productivity, resolve dilemmas, and attain a level of success. However, such success cannot be attained without properly examining, planning, embracing, and managing innovation. In other words, organizations must carefully map the process of innovation in order to succeed.
Innovation according to (Schumpeter, 1997) is the process of producing and applying new and creative ideas to products or processes in order to create value for customers. This can mean an introduction of an entirely new product or system of supplying goods and services or an improvement of an existing one.
One example of innovation, which is the process of devising a new idea or thing, or improving an existing idea (5), is the two-mode hybrid system being used today on GM’s hybrid pickups and SUV’s. This was a result of the partnership between BMW and GM in which both manufacturers benefited. BMW benefited from GM’s battery, extended ran...
Defining ”innovation”could be rather a difficult task as it is a “multi-faceted phenomenon”, and a widely u...
When you look at your cell phone do you ever ask yourself, how did they come up with this idea? There are companies that have systems specifically targeting innovation development; it allows employees to be in an environment that will help stimulate ideas for that will help enhance the company’s product(s). This type of system is called innovation architecture. According to ‘textbook’, “It’s a blueprint for strategic and industry transformation—an explicit and widely shared point of view about how the company will strive to differentiate itself now, and five to ten years into the future” (Dryer & Gregersen, 2009). This system is extremely beneficial to organizations because it increases their ability to enhance their product, that will fit
The new product has new features and/or characteristics that are able to retain existing customers and attract new customers. The marketing mix should be able to increase the company’s sales and revenues.
Learning Team A will describes and evaluate Netflix’s innovation strategy, the specific products offered to their members, and the benefits that the company brings to its customers and employees. To begin, innovation goes beyond an invention. It captures the opportunity for change, growth, and market leadership that allows leaps within the industry in multiple ways (Pearce & Robinson, 2011, p. 376). Simply stated on Merriam-Webster.com, innovation is “the introduction to something new; a new idea, method, or device”
Innovation is defined as generation of new ideas or application of new ideas to existing situations to improve productivity, quality of care, and outcomes. Some of the principles of innovation are creative problem-solving; open, assertive communication to empower
A disruptive innovation is an innovation that generates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and
Organisation for Economic Co-operation and Development OECD (2005) explains marketing innovation as the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. Innovation can be making changes to existing or introducing something new that adds value to consumers. The objective is for companies to gain superiority/ competitive advantages through innovation.
While creativity is the ability to produce new and unique ideas, innovation is the implementation of that creativity - that's the introduction of a new idea, solution, process, or product. Creativity and innovation should be the priority of every business.
1).Innovation Management:Innovation Management is the form of looking into future, of being creative, imaginative .It is used in the growth of product and also organizational innovation. It also includes tools which allows higher management & engineers to communicate with basic understanding of goals and its processes .Its main focus is to allow the organization to react quickly occurring within an organization, using its efforts to implement new ideas or its products. It also involves persons in contributing to the development of the companies manufacturing and also its marketing. Through development also innovation process can be done. There are two types of process involved in innovation management one is pulled and the other is pushed. Pushed process is the one in which the organization uses its technology to discover profitable applications. Pulled process is the one in which the focus is mainly in developing the efforts to find the solutions. There are two phases in innovation management .First phase includes design of the innovation and second phase includes the implementation. Internal bench marking can be established to measure the innovation. Managers should focus on ones attention on innovation cause to be necessary to infer something from information received on the complexity.