The Invention Of An Invention

1685 WordsJun 16, 20157 Pages
Innovation It is imperative to distinguish between invention and innovation. An invention is the first appearance of an idea for a new product or process while innovation to attempt to put the new idea into practice. It is the transformation of an invention into a new product or process and its commercial and social exploitation. Thus, to turn an invention into an innovation, a firm, requires combining numerous types of knowledge, skills, capabilities, market knowledge, a properly functioning distribution system and sufficient finances. In a firm the sources of innovation can be both internal and external. The former includes research and development, design, tooling up and marketing while the later are capital goods and equipment, consultancy, licences and acquisition of patents and scientific literature Schumpeter defines innovation as “new combinations” of existing resources. He called the work of combination “the entrepreneurial function” which is to be accomplished by entrepreneurs. One major reason for the invaluable role played by entrepreneurs to make sure that innovation gained ground was the widespread resistance to change in the society. Thus, the individual entrepreneur has to curve his position in the market so as to succeed in his venture. (Fagerberg 2006). The purpose of carrying out of new combinations of resources is to to facilitate: one, to introduction of a new good. The consumers are not yet familiar with this type of goods or the new quality of the

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