The Relationship Between Entrepreneurship, Innovation and Economic Development

Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a

Innovation brings changes, and for bringing desirable and appropriate changes, a clear understanding of innovation is vital. A plethora of discourses indicates what innovation is, but it remains fuzzy because of contextual biases and disparity (Crossan, M. M., and Apaydin, M., 2010). The literature of innovation, on the other hand, refers to innovation as a category covering a wide spectrum of issues that include a source of change (cause), a changing process, and a changed state (effect), which appears ambiguous because the cause, effect and the process in-between cannot be the same.

Innovation is the process by which organizations use their resources and competencies to develop new or improved goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers. Innovation can result in brilliant success for an organization. Apple’s ipod has changed not only the music listening industry but also music purchasing and now they are moving into the mobile phone industry.

Innovation is an idea that must be cost-effective and must gratify a precise need. Innovation includes careful application of information, imagination and creativity in stemming greater or different values from resources, and includes all processes by which new ideas are generated such as brainstorming and converted into useful products.

Innovation is a term that is so widely used and thought of as simple inventions, but it is truly so much more. Innovation is a complex thought process of new ideas that can be implemented for the betterment of many. Change and adaption within any environment is the foundation of innovation and identifying its sources make it easier to implement innovation. The easier it is to foster an innovative environment and inject innovation; a positive impact on a business is instantly seen

The word ‘innovation’ is derived from Latin word ‘innovare’, which means “to change something to new”. In other words, we may say that ‘innovation’ means changing the regular way of doing things and involves doing the regular things in a novel way.

Now the market is not as innovative as it use to be; instead it is accepting where the economy is placed globally and are fixated that they are unable to change it no matter how hard they try.There are a few sources of innovation and i will briefly define each one, the first one is unexpected occurrence and this is when innovative ideas come out of nowhere. The next way innovation can initiate would be by incongruities which is changing something we do currently to make it better or more efficient. Then there are process needs which is solving a process in a system. The next way innovation can be created was an industry and market change which is correlated with external changes which in sense was demographic. Then there was one's perception, if one would view a glass as half empty or half full and lastly the final way innovation can be sourced is the way of new knowledge, which means the advancement in many fields like science and

However, the process of innovation is closely linked to the understanding of innovation – whether it is an act of bringing changes or consequence of an action which represents changes. It is easily understandable that any particular action does not ensure the same outcome but may bring changes, and all changes are not considered innovation. So, it is imperative to develop a clear understanding of the concept for proposing a generalized process of innovation.

A working definition is “Innovation is the entire process by which an organization generates creative new ideas and converts them into novel, useful and viable commercial products, services, and business practices.” (Garud et al., 2011).

“Innovation usually discusses the altering or generating more effective developments, products and ideas, and can rise the possibility of a business get to the top. Businesses that innovate produce more effective work methods and have better output and performance. Innovation can be a promoter for the progression and success of your business, and help you adjust and grow in the marketplace. Being innovative does not mean inventing; innovation can mean changing your business model and adapting to changes in your environment to deliver better products or services. Successful innovation should be an in-built part of your business strategy, where you create a culture of innovation and lead the way in innovative thinking and creative problem solving.”

Innovation is the process of creating new value using advance knowledge produced as a result of invention.

Various scholars have defined innovation from their respective backgrounds or perspectives, because it has been very difficult to make a consensus of a single definition of innovation as a concept (Moohamm et al., 2014). For example, Madewell (1986) and Slaughter (1998) described innovation as the implementation of a process, system or product new to an organization, to expedite reductions in cost and agenda and improvements in quality and safety, in order to improve competitive advantage and increase the technical feasibility of projects thereby increasing market share. Damanpour (1992) defined innovation as the adoption of an idea or behaviour that is new to the adopting organization whether a system, policy, program, device, process, product or service. Organization for Economic Cooperation, and Development (OECD, 2005)

It is found, perhaps more commonly, in new ways to create value and operate rather than a new line of products. (Rigby, Christenson, & Johnson, 2002) The true definition of innovation lies in the cooperation and association of technology and business. The areas of overlap between the two show business leaders the most economizing actions and help them learn. Innovation can take many forms, from a new technology to a new product line to applying new concepts in the business model to maximize efficiency. (Teece, 2010)

Bessant and Tidd (2007) are of the opinion that innovation is the translation of conceptualised ideas into commercially profitable

Innovation offers the companies a competitive advantage. Presently and within the future, more than any time in history, the key to competitive advantage is innovation. However innovation will facilitate businesses meet all of their strategic challenges, not simply competition; to illustrate, in confronting accelerating rates of change, globalization, apace advancing technology, a additional numerous workforce, associated a modification from an industrial to a knowledge-based economy. Meeting all of those challenges helps the firm attain competitiveness, and meeting these challenges suitably depends on innovation. Innovation allows a firm to workout its challenges in distinctive ways in which build competitive advantage either through relative differentiation, a relative low-priced position, or few acceptable level of each. Innovation cannot assure success, however success cannot be achieved within the end of the day without it.