Relationship of Entrepreneurship, Innovation and Creativity

1993 Words Dec 6th, 2012 8 Pages
With the rapid development of dynamic global economy, increasingly countries are seeking breakthroughs of their economy development. Stimulated by these ever-increasing competition pressures, exploitation of new ideas and businesses which are of great potential to thrive economies, accordingly, is gainning widespread attention (Mansfield, 1972; Wong et al., 2005). In consequence, on a global scale, not only some developed countries with strong capability to absorb and implement new ideas, but also some emerging developing countries, are taking measures to inspire entrepreneurship and innovation with purposes of benefiting economic development from these competitive advantages (Stoneman, 1995; Zhao, 2001). It is universally held that …show more content…
Entrepreneurship, on the other hand, enables innovation to flourish (Zhao, 2001; Michael, 2005). Schumpeter (1934) originally endeavors to associate innovation with entrepreneurship by identifying innovators as entrepreneurs. Entrepreneurship enables innovation to realise further value by marketing them as products or services. Second, the development of entrepreneurship and innovation, and mutual effect between them for the successful practicality of innovation, demand support of innovative culture and management (Drucker, 1985; Zhao, 2001). The success of McDonald’s can be taken to confirm this point. Products sold in McDonald’s are not originally invented, virtually, they are just what had been produced in respectable restaurants many years ago. Nevertheless, by adopting a set of innovative management techniques and concepts, McDonald’s has standalized its products and designed specific working process based on which production can be analysed (Drucker, 1985). In consequence, McDonalds opened up a new area and substantially raised revenues.

Before considering the relationship between entrepreneurship together with innovation and economy development, it is essential to respectively observe their relationship with economy development. Firstly, innovation is a vital contributor to economic development albeit with its insufficient nature (Grupp, 2001; Stoneman, 1995; Camp, 2005).
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