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Innovation and Entrepreneurship: Definitions and Importance

• Innovation and entrepreneurship are essential for survival and growth in business.
• Innovation is a process, not a single event.
• Managing unpredictable and risky aspects is difficult.
• Managing this calls for effective strategies.
• Survival is not guaranteed; enterprises must be capable of change. Bill Gates noted, Microsoft is always only two years from extinction, and Andy Grove mentioned only the paranoid survive.
• It is about what it is, why it matters, and how to organize and manage it effectively.
• Innovation associates strongly with growth and Competitive advantage can come from size, assets, technological skills, and mobilized knowledge.
• Innovation accounts for a significant portion of economic growth. William Baumol pointed out that economic growth is attributable to innovation since the 18th century.

Global Spending and Business Perspectives on Innovation

• OECD nations spend $1700 billion annually on R&D. China intends to dedicate 2.5% of GDP to research by 2020.
• South Korea and Israel are the countries most focused on R&D globally.
• 16.8% of German firms’ turnover in 2008 derived from newly introduced products.
• The Community Innovation Survey (CIS) showed 53% of businesses were innovative.
• The UK reported more exports, more qualified staff that had science and engineering degrees of all innovators.
• Innovative companies have higher growth rates while over the previous three years innovative companies delivered growth at a rate of 16% above the least innovative and are predicted to almost double the global average in 5 years.
• Senior executives view innovation as a competitive necessity, but not due to R&D investments alone.
• 79% of companies ranked innovation as a top strategic priority for a larger market share and entry speed into new fields.

Innovation Not Just High Technology

• Innovation and competitive successes extend beyond high-tech companies.
• Wurth, the largest screw maker, maintains its dominance through product/process innovation.
• UK's Dairy Crest has turnover of nearly €1.5 billion.
• Danish company Christian Hansen has spent 200 supplying live bacterial cultures.
• Long-established German firm, Wilo was founded in 1872 has evolved to manufacturers of Domestic and industrial pumps.
• Hella, starting as a startup in the nineteenth century, employs 35,000.
• Innovative ventures see substantially higher future returns in the stock market.
• Innovation is linked to higher profits, faster profit growth, and larger profit margins. An example shows that the relationship isn't due only to investments in research and development but rather about the knowledge to value conversion.

Examples of Companies

• Adidas with its 'mi-adidas lets you custom make shoes using printing technologies
• Nike is another brand in the industry which has self tie laces which are smartphone controlled.
• Nike's Vaporfly shoes enhanced performance by 4%, which improves performance, to be banned at the Olympics
• The shoe helped athletes break multiple records that other manufacturers should catch up too. It also had a positive change in their stock prices by 90%
• The Karolinska Hospital cut waiting lists by 75% and cancellations by 80% through innovation. Other public sector innovations have included the postage stamp, National Health Service in the United Kingdom and fibre optics, radar and the Internet

Innovation Across Sectors

• Innovation is about spotting opportunities.
• Innovation can benefit established markets by serving in new ways where there are low-cost airline, Spanish company Inditex.
• Inditex can reduce turnaround time to 15 days.
• Markets can also grow by being creative and adaptive. Alexander Bell, Henry FordeBay are examples.
• Innovation lowers capital costs and improves efficiencies while banking and insurance.
• In meeting with social needs, innovation offers many challenges but is not impossible dream.
• It can better operations by improving efficiencies.

Examples of Successful Entrepreneurship

• Sally Windmuller set up a small accessories business
• Robert Clifford capitalized on ferry demand to establish Incat.
• Dr Pramod Karan Sethi and Ram Chandra are the cofounders of Jaipur foot. It was made simply and with low tech and low cost materials.
• The article also finds that Entrepreneurial communities have more vibrancy in the criminal world for new crime and law.
• First Direct offered telephone banking.

Hidden Innovation

• Nesta studied areas of innovation. It consisted of Types I, II, III and IV, and it was also found that companies must seek innovative solutions. The most associated characteristic with success that stems from is the ability to increase market share and achieve growth that nurture the regional and national levels.

Innovation, Vision and Passion

• Innovation is a potent mixture of vision, passion, energy, enthusiasm, insight, judgement and plain hard work.
• Internal driven by venture within departments are key to innovation. The driving force is the creation of innovation, social commercial and life cycle.
• It was the concept of looking to create with one's own view and that which was to change into the next generation/innovation.

Historical Perspective on Innovation

• Karl Marx served to remind us the innovation challenge always existed but have to change offerings.The increased potential in all the technology and its increased instability leads to complexity and unpredictable circumstances.The technological sector must continue the innovation. Innovation involves complex manufacturing that lead to the development known,

Kodak

• Kodak was built around film photography by the business was about providing photography for all mass audiences.
• However, the business model and product line changed to digital photography and the company then applied for bankruptcy.
• They are now back from a different angle in technology.

The Globalization of Innovation

• The R & D sector has grown to include even small countries due to the increasing system of international innovation. America has slightly decreased (28%), however other parts of the world have risen. There are also other countries in the world that have been investing in technology such as Taiwan , Singapore or Denmark.

Innovation in a Fast-Paced World

• Brazil, India, increased economic value • Strategic collaboration & source of ideas, Openness, Global perspective: Table 1.5 • Knowlege increasing • Global distribution • World is expanding and shrinking

Defining Innovation and Its Key Aspects

• Alva Edison registered over 1000 patents
• Definition"the successful exploitation of new ideas', and also about social value like as health care.Those ideas could lead to a new, improved tech product that would bring about growth.Longevity comes from repeating that trick of improvement.
• If you understand the process, we can then become intentional in implementing it. Otherwise what will happen will be difficult to solve over the long run because of lack of attention like market development, financial management, and behavior.

Defining Innovation, Successful Exploitation of New Ideas

• Innovation is the tool of entrepreneurs. - Peter Trucker
• Companies achieve a competitive advantage -Michael Porter What makes for an innovative business. -Richard Branson

Examples of

• Electricity & vacuums being great ideas but they were not good when they were not sold to the public
• Spangler who was going to bring technology to everyday use, while Singer produced the sewing machine and would later get more money.

Success Isn't Always a Straight Path

• A good example was engineers working to create new car, Ford Edsel & others have encountered problems as well and had lots of loss.

The innovation

• Phase can be looked at with the Biological. To have good research, variety is needed, where different ideas can develop. Implementation involves scarce resources, which can get more complex with uncertainty. Finally value is always on trial, which involves justifying the effort. It occurs through a number of influencers in their people, creativity, idea, and the presence.

Machiavelli, Management and Disciplines

• A good quote states nothing is that good compared to doing it. • Management helps create comfort; managers are all about order and are judged by how are innovation has a tension between managers, where everything will never be the same. • 4-Ps that are combined in how you will manage the information.

Innovating in Different Ways

• To create value, or offer service. Then make more that are different. Innovation does well and what helps it hinder it where we want people’s creativity to go to that extent.

Strategic Advantages Through Innovation

• Novelty or process should have strategic advantage, like for those with Rolls Royce, they make their products difficult to master for others
• The market share of certain products is also strategically timed based on how they know. It can also offer robustness with other benefits for better productivity like the walkman.