Innovation Of An Entrepreneur Creates Innovation

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As entrepreneurs, we are expected to transform, motivate, and thrive. We are seen as the movers and shakers of multibillion pound industries. However, one question always remains, how? The answer is innovation. According Joseph Schumpeter, an entrepreneur creates innovation; not only through invention but by competition to improve technology, finance and organization. Innovation in its simplest form is the generation of a new idea and this idea’s implementation into a concrete form. Innovation can appear in the form of an idea, practice, service, or product. In order to characterize anything as innovative, it must be perceived as adoptively original or new within a market. As a principle, innovation is change or the creation of market…show more content…
The first factor, technology, relates to the enterprise involved in a new product and how it differs from prior knowledge that exist or is being used. The second factor, markets, relates to the scope in which a product effectively fulfills consumer needs better than an existing product. Both these factors places a key role in how radical and incremental innovation operate. A general example of this concept would be the cumulative effects of incremental innovation on technology in television. The technological advances in changing televisions that show pictures in black and white to color accumulated and created not only an economic impact but also a change in the market of communications. This example demonstrates how innovation can utilize technology and create changes to products in order to improve a market. Furthermore, the difference between radical and incremental innovation are the high and low incentives given to consumers and their economic impact. An example of this would be Apple’s iPhone and the updates and various version of this product. The various software updates such as Siri, IOS9, as well as, design changes such as microchip, touch screens, to the iPhone, itself, can be considered incremental innovation. This is because it deals with the creation of changes to an existing product over a continual period of time. According the Rajesh Chandy and Gerald Tellis, it also can be considered incremental innovation
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