Concept of Innovation & Entrepreneurship · A multi-dimensional framework of organizational...
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Concept of Innovation & Entrepreneurship 2.1.2018 1
Transcript of Concept of Innovation & Entrepreneurship · A multi-dimensional framework of organizational...
Concept of Innovation & Entrepreneurship
2.1.2018
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What is innovation?
Innovation
Innovation is: production or adoption, assimilation, and exploitation of
a value-added novelty in economic and social spheres; renewal and
enlargement of products, services, and markets; development of
new methods of production; and establishment of new management
systems. It is both a process and an outcome.- Crossan and Apaydin, 2010
Innovation
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Invention
Sources: Agamawi, 2012. Fagerberg et al. , 2005
Innovation
Two dimensions:
• Type of innovation
• Degree of novelty
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Types of Innovation
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Service
InnovationProduct
Innovation
Process
Innovation
Source: Agamawi, 2012
Innovation: degree of novelty
Incremental
-reduction of costs or
functional improvements
-existing knowledge
-increasing competitiveness
-low uncertainty
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Radical/Disruptive/Breakt
hrough
-new products, services or
processes
-new knowledge
-transforming markets
-high uncertainty
Source: Emprechtinger, 2016
Low Novelty High Novelty
Incremental innovations
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Radical/ Disruptive innovations
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Alexander Graham Bell –
1878
First call from a mobile –
over 40 years ago
Nokia Mobira, 1984
Innovation spectrum
Source: Jackson, 2011
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Why do we care?
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Motivators for innovation (contemporary approach)
• Innovation leads to wealth creation
• Catalyst for regional development
• Basis for comparative advantage of nations
• Creativity & human nature
• Key value for the longevity of business
• Source of transformative, qualitative change
• Source of organic growth for firms
• Solution to complex problems (e.g. climate change)
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Sources: Shukla, 2017; Garud et al. 2013; Rennings 2000
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Source: Cornell University, INSEAD, the World Intellectual Property Organization & others)
58.5
Who innovates?
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"Entrepreneur" (1723) – “adventurer”
• Creative destruction
• J. Schumpeter
• Willingness to develop and take risks
• Entrepreneurial behavior – not only
for start-ups
• Operating in an ecosystem• Government programs
• NGOs
• Lobbyers
• Incubators
• Education
• Financing
In order to succeed
1. Innovation is work
2. Innovators must build on their own strengths
3. Innovation is an effect or change and must be close to the
market
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Source: Drucker, 2008
Last remarks
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The influencers
• Joseph Schumpeter (1883-1950), Neoclassical economics. e.g.
Capitalism, socialism and democracy; Economic theory and
entrepreneurial history
• Peter Drucker (1909-2005), Modern management. e.g. ”The End
of Economic Man”, ”Concept of Corporation”, ”Technology,
Management and Society”
• Clayton Christensen (1952- ), Business consultancy. ”The
Innovator’s Dilemma”
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ReferencesAgamawi, M. (2012). From Idea to Product. Course lectures
Crossan, M.M., Apaydin, M. (2010). A multi-dimensional framework of organizational innovation: A systematic review of
the literature. Journal of Management Studies 47 (6), 1467–6486.
Drucker, P. (2008). The Essential Drucker. The Best of Sixty Years of Peter Drucker’s Essential Writings on Management,
HarperBusiness: US.
Emprechtinger, F. (2016). What is the degree of innovation?. [Blog] Lead Innovation. Available here. Accessed 27.12.2017
Fagerberg, J.; Mowery, D.C., Nelson, R.R. (2005). The Oxford Handbook of Innovation, Oxford University Press Inc., New
York.
Garud, R., Tuertscher, P., & Van de Ven, A. H. (2013). Perspectives on innovation processes. The Academy of
Management Annals, 7(1), 775-819.
Global Innovation Index (2017). Official website [online], Cornell University, INSEAD, the World Intellectual Property
Organization. Available at: https://www.globalinnovationindex.org/home . Accessed 1.1.2018
Jackson, D.J. (2011). What is an Innovation Ecosystem. White paper. Available at: http://erc-assoc.org/content/what-
innovation-ecosystem. Accessed 27.12.2017
Rennings, K. (2000). Redefining innovation—eco-innovation research and the contribution from ecological economics.
Ecological Economics,32(2), 319–332.
Schumpeter, J. A. (1947). The Creative Response in Economic History. The Journal of Economic History, 8(2), 149–159.
Shukla, A. (2017). What is Innovation? Why Innovation is important?. [Blog] Paggu. Available here. Accessed 27.12.2017
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