What is Innovation and Entrepreneurship.pdf

GRD301: Innovation and Entrepreneurship GRD301: Innovation and Entrepreneurship Innovation and Entrepreneurship GRD 301 *This course includes materials licensed by Stanford Center for Professional Development on behalf of Stanford University. The material...

GRD301: Innovation and Entrepreneurship GRD301: Innovation and Entrepreneurship Innovation and Entrepreneurship GRD 301 *This course includes materials licensed by Stanford Center for Professional Development on behalf of Stanford University. The materials provided herein do not confer any academic credit, benefits, or rights from Stanford University or otherwise confer a relationship between the user and Stanford University. PowerPoint developed by David Vanhoutte Lesson Learning Outcomes: Students can explain the terms entrepreneurship and innovation. Students can explain the difference between innovation, invention and creativity. Students can identify examples of innovation in a healthcare setting. Students can understand the difference between routine and innovative work and provide examples for each. Students will appreciate the role of failure in the process of innovating What Is Innovation? “It’s not about ideas. It’s about making ideas happen.” -Scott Belsky, cofounder of Behance Innovation is about … Finding what people NEED Not what they say they WANT "Necessity is the mother of invention" is a well- known proverb. It means, roughly, that the primary driving force for most new inventions is a need. In large part, the same is true for innovation. Even though innovation may be driven by different forces, when innovating an existing product or service, technology, or approach, we can see that when there was a need, the innovation can be well marketed, and can thus be well received. What is Difference Between Innovation and Invention? An invention occurs when you are creating a completely new idea, while an innovation is improving upon an existing idea. Health care/science examples: - Nutrition: Human health conditioned by sufficient intake of nutrition in relation to possible food production/supply: Considering in the 1960s population growth and projected land requirements to sustain food production; Esther Bosserup (1965) theorized that technology will be created when the need arises. Indeed, her theory proved correct when the green revolution demonstrated that fertilizers for producing food crops were highly productive. Fertilizers: Are they an Innovation or Invention? Health care/science examples: - Vaccine development: When COVID-19 arose, the pharma sector mobilized to develop new vaccines. (Vaccine development started more than two centuries ago when an English Doctor (Dr. Jenner), treated a young boy by injecting him with pus from cowpox blisters found on a milkmaid’s hands. Cowpox contains the vaccinia virus, which causes smallpox. The injection immunized the boy against smallpox. The name of the virus was used to coin the term “vaccine.” Covid-19 vaccines: Innovation or Invention?  Innovation The idea is not enough. You have to implement it. Creativity + Implementation = Innovation So, considering the Apple iPhone: Is this an invention or innovation? The iPhone itself was both invention and innovation. Because it is in part derivative of other earlier technologies. Apple did not invent GPS, the camera, or the phone itself for example, but all incorporating features into one phone is innovation and not invention. What is Entrepreneurship?  Entrepreneurship: “is the process of creating something new and assuming the risks and rewards”. The word comes from the French verb 'entreprendre’ which means 'to undertake.’) An Entrepreneur is: A person who starts and/or operates a business. A person who discovers market needs and launches a new business to meet those needs. A risk taker who provides an incentive for change, innovation, and progress. Four aspects of being an entrepreneur today: Involves creation process. Requires devotion of time and effort. Involves rewards of being an entrepreneur. Requires assumption of necessary risks. (Source: ‘’Entrepreneurship’’ Hisrich; Peters; & Shepherd (2020) Entrepreneurial Characteristics (Timmons and Spinelli Model) Examples of entrepreneurs Bill Gates, founder of Microsoft. Steve Jobs, co-founder of Apple computers Mark Zuckerberg, the founder of Facebook. What entrepreneurs do you know? Do they display these characteristics? “Entrepreneur”: different definitions over time:  1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield. 1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services. *Status quo: the situation as it is now, or as it was before a recent change *Shatter: Break  1961: David McClleland: An entrepreneur is a person with a high need for achievement. He is energetic and a moderate risk taker. 1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. 1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies. 1975: A. Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.  1985: W.B. Gartner: Entrepreneur is a person who started a new business where there was none before. 2010: M. P. Peters, R. D. Hisrich, & D. A. Shepherd state that although being an entrepreneur means different things to different people, there is agreement that we are talking about a kind of behavior that includes: (1) initiative taking, (2) the organizing and reorganizing of social and economic mechanisms to bundle resources in innovative ways, and (3) the acceptance of risk, uncertainty, and/or the potential for failure. Entrepreneurs Versus Inventors  Inventor: Creates something for the first time; highly driven and motivated by his or her own work and personal ideas. Differentiating characteristics of an inventor: Education. Level of experience. Problem-solving skills. Level of self-confidence. Willingness to take risks. Ability to tolerate ambiguity and uncertainty. View of monetary benefits in measuring success.