martes, 15 de enero de 2013

WHAT IS INNOVATION?


During our career time we Heard a lot about innovation but sometimes we only have a vague idea of what it’s that or in certain cases don’t see innovation has a leading process for our personal success. In this paper I will show the reader some definitions and the approaches from different authors, a little bit about the history of the word “innovation” and tell you briefly the innovation process and sometimes how this could lead you to a life of success.

Innovation has always been around us since the beginning of the time, starting when the human been found the fire which in that case was something huge for mankind. Those where our little step of innovation to preserve ourselves but them we start evolving and thinking different, we invent the wheel and everything start to change. We emerged from the dark ages with the renaissance and the work of giants such as Leonardo da Vinci and Michelangelo. A mere 300 years later came the industrial revolution, and the next big spike in knowledge growth was between 1880 and 1920 with the era of the inventor (Merrill 2008).  The innovation starts as a need of the human been to survive but was evolving as something need to distance normal people from entrepreneurs or inventors. People as Henry Ford saw the need for speedy travel; Alexander Graham Bell saw that the need to communicate, Thomas Edison saw the shortcoming of oil and gas lighting in the home.

For some authors such as Peter Merrill who wrote in his book Innovation Generation: creating an innovation process and innovative culture that innovation is about developing the products and services that the market needs tomorrow, and is driven by the need for convenience, not by technology. Finding a cool idea while it may be interesting and exciting has no value unless that idea solves a real problem; Even then, new ideas will only be adopted if they are easy to adopt (Merrill 2008). This approach of innovation could be seen as good but it’s leading behind that right now the communication and the technology itself is driven innovation faster that it did the past two decades.

Now, base on the business dictionary innovation can be define as “the process by which an idea or invention is translated into a good or service for which people will pay, or something that results from this process”[1]. In order to be considering as innovation, any idea must be replicable at economical cost and must satisfy the specific need by which was design or create for. Innovation necessarily involves a deliberate application of information, imagination, creativity and initiative in finding greater or different value from resources, and joins that idea until converted it into useful products. From a business approach, innovation often results from the application of a scientific or technical idea in decreasing the gap between the needs or expectations of the customers and the performance of a company's products. In the other hand in a social context, innovation is  really important in making new ways of collaboration methods between companies and people, such as collaboration methods are  alliance, joint venture, franchise, license and so on.

We could not forget to mention one of the best authors in management which is Peter Drucker , who is consider as the man who invent management and contribute to many topic such as innovation. Innovation is the specific function of entrepreneurship, whether is an existing business, a public service institution, or a new venture started by alone individual in the family kitchen. It is the means by which the entrepreneur either creates new wealth- producing resources or endows existing resources with enhanced potential for creating wealth (Drucker 1998).

But the real issue for us as future professional is Why Innovation is important? , nowadays the companies which do not innovate, improve or make new products to their target market is not consider as proactive company instead could be said that it won’t growth as other companies which innovation is part of the organizational structure. Otherwise Studies have confirmed that all businesses want to be more innovative. One survey identified that almost 90 per cent of businesses believe that innovation is a priority for them. The conclusion is that the importance of innovation is increasing, and increasing significantly. In the current day economic scenario, innovativeness has become a major factor in influencing strategic planning. It has been acknowledged that innovation leads to wealth creation. Even though efficiency is essential for business success, in the long run, it cannot sustain business growth (Shukla 2009).

Innovation capacity is the ability of enterprises to identify trends and new technologies, as well as acquire and exploit this knowledge and information (Tidd, Bessant & Pavitt 2005). The innovation capacity concept needs to take distance from dynamic innovation capability; the real deals with the firm’s specific ability to continuously transform knowledge and ideas into profitable innovations.  In this framework, (Terziovski 2007) developed a leadership-based model, in which firms innovate across three domains—new product development, sustainable development and e-commerce—using all aspects of the firm’s capacities.

The process-based conception of innovation capacity, connecting technological and human capital stimuli, highlights the role of learning in the innovation process (Lichtenthaler 2009). In the past two decades innovation research focus on the technological factors that improved innovation, identifying all the elements of the innovation process, such as R&D, physical sciences education, engineering and design (see Tidd, Bessant & Pavitt 2005, p.112). But now the approach has added one more factor to the common R&D (Research and Development) adding Innovation in the equation, ending as R+D+I.  As studies on the human factors of innovation within the enterprise began to appear after (Kanter 1983), the need arise to link these human factors into an overall macro view of the complete innovation process that operates within an enterprise.

As seen before innovation is more than fundamental nowadays to any company, now has turn into a fundamental factor that could lead to the highest point in market and at the same time help you take distance from your competitors. Innovation process should be part of the company in every division making that all people start thinking and giving new ideas how to improve the products or services provide.


  1.  Merrill Peter, Innovation Generation: Creating an Innovation Process and an Innovative Culture, 2008. Page XVIII. Available at : http://books.google.com
  2. Business dictionary definition. available at : http://www.businessdictionary.com/definition/innovation.html
  3.  Drucker Peter, The Discipline of innovation. Harvard Business Review, 1998. Available at: http://www.businessdictionary.com/definition/innovation.html
  4. Shukla Amitabh, What is innovation? Why innovation is important, 2009. Available at : http://www.paggu.com/getting-into-roots/what-is-innovation-why-innovation-is-important/
  5. Tidd, J, Bessant, J & Pavitt, K 2005, Managing innovation: integrating technological, market and organizational change, 3rd edn, John Wiley & Sons, Chichester.
  6. Terziovski, M 2007, Building innovation capability in organizations: an international cross-case perspective, Imperial College Press, London.
  7. Kanter, RM 1983, The change masters: innovation and entrepreneurship in the American corporation, Simon & Schuster, New York.
  8. Lichtenthaler, U 2009, ‘Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes’, Academy of Management Journal, vol.52, no.4, pp.822–46.
  9. Kanter, RM 1983, The change masters: innovation and entrepreneurship in the American corporation, Simon & Schuster, New York.


[1] http://www.businessdictionary.com/definition/innovation.html

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