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Sources of Innovation

Sources of Innovation

Introduction

Innovation is the successful application of new ideas, techniques, methods and technologies in order to produce some measure of positive benefit over incumbent concepts. Innovation involves using creativity to produce solutions that differ from the status quo; however, innovation is greater than the act of simply developing new ideas—it is the successful application and the diffusion of these ideas throughout society.

Discussion

The Concept of Innovation

An inventor is someone who develops a new technology or idea, whereas an innovator is a person who manages to make the technology or idea work in practice. This is explained well by Jan Fagerman, who states that an important distinction is normally made between invention and innovation. Invention is the first occurrence of an idea for a new product or process, while innovation is the first attempt to carry it out into practice.

While innovation can broadly be described as the successful introduction of something new, Joseph Schumpeter defined innovation as being in one of five classes:

•New goods; introducing new products and services to the market.

•New methods; developing a new way of doing something.

•New markets; the development of a new marketplace for products or services.

•New sources; exploiting new resources of raw materials or components—whether that resource is one that exists and hasn't previously been utilized, or whether it has to be created.

•New organization; reorganizing or configuring a market, industry, or organization to work in a different way.

Innovations have both advantages and disadvantages for individuals, firms, universities, government agencies and non profit organizations which are stated below:

Individuals as Innovators

Advantages

An individual can sell its invention to any huge company and hence get a huge sum of money .An individual can be contacted by big companies ,potential investors to work with them and share his/her ideas with them and it could lead ...