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The term '''innovation''' means the continual generation of new technological [[idea]]s and products and services based on those [[idea]]s. Innovation in [[information technology]] improves the productivity of the [[information industry]] itself and also offers the tools for improving the productivity of many other sectors of the economy. |
The term '''innovation''' means the continual generation of new technological [[idea]]s and products and services based on those [[idea]]s. Innovation in [[information technology]] improves the productivity of the [[information industry]] itself and also offers the tools for improving the productivity of many other sectors of the economy. |
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Innovation encompasses both the development and application of a new product, process, or service. It assumes [[novelty]] in the device, the application, or both. Thus, innovation can include the use of an existing type of product in a new application or the development of a new device for an existing application. Innovation encompasses many activities, including scientific, technical, and market research; product, process, or service development; and manufacturing and marketing to the extent they support dissemination and application of the invention. |
Innovation encompasses both the development and application of a new product, process, or service. It assumes [[novelty]] in the device, the application, or both. Thus, innovation can include the use of an existing type of product in a new application or the development of a new device for an existing application. Innovation encompasses many activities, including scientific, technical, and market research; product, process, or service development; and manufacturing and marketing to the extent they support dissemination and application of the invention. |
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| + | == Innovation process == |
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| ⚫ | The innovation process is first and foremost a |
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| ⚫ | The innovation process is first and foremost a systematized, creative, learning and application process. Its goal is to capture and maintain comparative competitive advantage for the company.<ref>''See'' National Innovation System: A Comparative Analysis (R.R. Nelson ed. 1993).</ref> The firm largely accomplishes this goal through an innovation process which is designed to acquire and create knowledge and transform that knowledge into business value — higher profits and equity.<ref>Keith Drake, "Firms, Knowledge and Competitiveness," OECD Observer, No. 211 (1998).</ref> Throughout time the source of knowledge has traditionally been those people who desire to learn and to change, and who are alert, aware, open-minded, and are capable of capturing and interpreting vast quantities and diverse levels of knowledge and information. |
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Competition today comes from a culture of innovation, and creativity has become an important component of this culture.<ref>Jerry Hirshberg, The Creative Priority: Driving Innovation in the Real World (1998).</ref> Companies adopting a creativity mindset develop an inventive environment within the innovation process which stimulates ownership and employee creativity — they "jam" or play off of one another. A company's innovation process could well involve literally hundreds of people consciously and continuously sharing experiences and information and seeking and inventing together. Jamming often occurs inter-firm as well involving extensive networks within which employees foster and facilitate the interchange and flow of information and knowledge between firms while maintaining computer rivalries.<ref>M. Porter, The Competitive Advantage of Nations (1990).</ref> Equally important, the innovation process of the successful company interacts with consumers and government and other businesses including suppliers, retailers, wholesalers, manufacturers, bankers, and others. It is not surprising that the clustering or co-habitating of these successful firms in relatively small geographic areas — Silicon Valley or Boston's Route 128, for example — has contributed to the pace of innovation.<ref>Rui Baptista & Peter Swan, "Do Firms in Clusters Innovate More?", Research Policy, No. 27 (1998).</ref> |
Competition today comes from a culture of innovation, and creativity has become an important component of this culture.<ref>Jerry Hirshberg, The Creative Priority: Driving Innovation in the Real World (1998).</ref> Companies adopting a creativity mindset develop an inventive environment within the innovation process which stimulates ownership and employee creativity — they "jam" or play off of one another. A company's innovation process could well involve literally hundreds of people consciously and continuously sharing experiences and information and seeking and inventing together. Jamming often occurs inter-firm as well involving extensive networks within which employees foster and facilitate the interchange and flow of information and knowledge between firms while maintaining computer rivalries.<ref>M. Porter, The Competitive Advantage of Nations (1990).</ref> Equally important, the innovation process of the successful company interacts with consumers and government and other businesses including suppliers, retailers, wholesalers, manufacturers, bankers, and others. It is not surprising that the clustering or co-habitating of these successful firms in relatively small geographic areas — Silicon Valley or Boston's Route 128, for example — has contributed to the pace of innovation.<ref>Rui Baptista & Peter Swan, "Do Firms in Clusters Innovate More?", Research Policy, No. 27 (1998).</ref> |
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== References == |
== References == |
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[[Category:Business]] |
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Revision as of 05:53, 11 March 2010
Definition
The term innovation means the continual generation of new technological ideas and products and services based on those ideas. Innovation in information technology improves the productivity of the information industry itself and also offers the tools for improving the productivity of many other sectors of the economy.
Innovation encompasses both the development and application of a new product, process, or service. It assumes novelty in the device, the application, or both. Thus, innovation can include the use of an existing type of product in a new application or the development of a new device for an existing application. Innovation encompasses many activities, including scientific, technical, and market research; product, process, or service development; and manufacturing and marketing to the extent they support dissemination and application of the invention.
Innovation process
The innovation process is first and foremost a systematized, creative, learning and application process. Its goal is to capture and maintain comparative competitive advantage for the company.[1] The firm largely accomplishes this goal through an innovation process which is designed to acquire and create knowledge and transform that knowledge into business value — higher profits and equity.[2] Throughout time the source of knowledge has traditionally been those people who desire to learn and to change, and who are alert, aware, open-minded, and are capable of capturing and interpreting vast quantities and diverse levels of knowledge and information.
Competition today comes from a culture of innovation, and creativity has become an important component of this culture.[3] Companies adopting a creativity mindset develop an inventive environment within the innovation process which stimulates ownership and employee creativity — they "jam" or play off of one another. A company's innovation process could well involve literally hundreds of people consciously and continuously sharing experiences and information and seeking and inventing together. Jamming often occurs inter-firm as well involving extensive networks within which employees foster and facilitate the interchange and flow of information and knowledge between firms while maintaining computer rivalries.[4] Equally important, the innovation process of the successful company interacts with consumers and government and other businesses including suppliers, retailers, wholesalers, manufacturers, bankers, and others. It is not surprising that the clustering or co-habitating of these successful firms in relatively small geographic areas — Silicon Valley or Boston's Route 128, for example — has contributed to the pace of innovation.[5]
References
- ↑ See National Innovation System: A Comparative Analysis (R.R. Nelson ed. 1993).
- ↑ Keith Drake, "Firms, Knowledge and Competitiveness," OECD Observer, No. 211 (1998).
- ↑ Jerry Hirshberg, The Creative Priority: Driving Innovation in the Real World (1998).
- ↑ M. Porter, The Competitive Advantage of Nations (1990).
- ↑ Rui Baptista & Peter Swan, "Do Firms in Clusters Innovate More?", Research Policy, No. 27 (1998).