INNOVATION AND CHANGES

Innovation and Changes

Innovation and Changes

Introduction

Economic growth is a central concept in economics and vital to the health of nations. Technological change as a dynamic process is the root of economic growth. Change improves economic efficiency and effectiveness, which leads to growth. According to the Nobel laureate Robert M. Solow, 87.5 percent of economic growth is rooted in technological change. Innovation is the key of these underlying processes, enabling growth and fundamental change for an economy. In addition to the effects of innovation on society and economy, technological change affects companies and their competitive position within an industry. This paper discusses innovation and changes in a holistic context.

Discussion

In the current era, because of the specialization of capabilities in the economy, most companies need to partner up for innovation and commercialization of their products and services. No company can seriously argue that it can rely solely on its own experts and internal innovations. Over the centuries but especially since the early twentieth century, firms and industries have innovated with the aid of sophisticated mechanisms for determining what consumers expect from products (Chang, 2011, Pp. 113-133).

Overcoming Difficulties in innovation:

Taking the features of the economy into account, the paradigm of Open Innovation presumed that organizations can and should utilize internal and external ideas to innovate and external and internal corridors to market to commercialize their technologies. Consequently and equally, companies should acquire innovative technologies from other companies and make their unused inventions available to others (e.g., through license, patents, joint ventures, or spin-offs). A prerequisite for open innovation is an underlying business model that addresses both value creation and value capture in an open system. The business model has to provide internal mechanisms to protect intellectual property rights (IPR) and to claim parts of the generated value. As a consequence of the economy's disintermediation and disintegration, there is an increasing trend toward open innovation, emphasizing business model as a chief ingredient for successful innovation.

Therefore, in order ot overcome the roadblocks in innovation it is necessary for the organization to be aware of to take a therapeutic process. There is no magic formula to resolve the situation of innovation, because it depends mainly on the type of innovation and how the organization approaches the solution for it from the knowledge it has of itself and its internal possibilities. A stimulating environment allows creative transition, which is what leads to a creative lifestyle, daring, original, innovative and seek new avenues and challenges for developing innovation in the service provided. The attitudes to overcome the difficulties produced by innovations include:

Identify blockages

Become aware of your existence.

Look for causes that produce them.

Gain awareness of creative potential.

Believe in the organizational abilities.

Motivation is an internal flow in the employees, which is activated through a process of elaborative cognitive response to a situation that impacts on their emotional structure, claiming that available to an object accepting all the energy and resources of the organization steadily and at different stages of the innovation ...