Role of Innovation

Essay by OsuyelUniversity, Bachelor'sA+, May 2006

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Some definitions and opinions

Origin of Innovation

General Outlook on Innovation

Role of Innovation

Innovation and Business

Competition and Innovation

Innovation and Organizations

Categories of Innovation

'Incremental innovation

Radical innovation

Leadership and Innovation

Leaders' Perspective

Leadership Perspective



"The innovator has for enemies all who have done well under the old, and lukewarm defenders in those who may do well under the new law."

Nicoló Machiavelli


While many organizations accept that innovation is significant to their growth and success, the "innovation" term has various definitions:

According to Yuri Ljuri and Robert Lawrence innovation has the following features;

Innovation is

1. product extension (same base product with slight modifications; identical product in a new segment),

2. new platform product (net product from which product extensions are possible),

3. new-to-the-company products and

4. new-to-the-world (never been done before; no market exists).

The Origin of Innovation: "innovation is the result of:

5. a shock (a major failure) to the system,

6. problematic search,

7. random variability in experimentation,

8. deliberate decision to invest in learning,

9. match between a need and ideas which already exist,

10. formal vehicles for stimulating innovation such as research and development,

11. managerial risk seeking or risk averse behavior,

12. availability of slack resources,

13. management philosophy and organizational climate, and

14. Customer needs."

Innovation is the application of a new or improved idea, good, service, process or practice that is useful. Researchers who have studied innovation generally split the innovation under five main types of innovation: product innovation, process innovation, organizational innovation, marketing innovation and business model innovation.

As consumers we enjoy new products and services that were not available a few years ago. Older products are available at much cheaper prices.

General Outlook on Innovation

Innovation is the key to...