Process of innovation

Process of innovation
See also

Innovation is a process of creating something new that develops overall effects in the economy and technological approach (Mónica Edwards-Schachter 2018, p. 1). It is a presntation of something completely new or just slightly upgraded goods and services (Paula Anzola-Román 2018, p. 234). Upgrading the innovation process makes investors able to finance completely new investments (Marisa Dziallas 2018, p. 1). It is also very important to remember that innovation always require some kind of investment that company need to put in it. This can include assets, salaries or purchase of materials and more. Proper investment can give in potential returns in the future (OECD 2005, p. 35).

Linear process of innovation distinguishes following stages:

  • Basic research - theoretical considerations, the aim of which is to create new ideas.
  • Applied research - finding practical solutions for created projects.
  • Development works - creation of a prototype.
  • Implementation - starting the manufacturing activity, checking the production technology (see: importance of technology).
  • Production - start of production using the technology.
  • Sales - initiation of sales.

Innovations can arise as a result of research and development, as well as the emerging market demand for new, improved products.

Types of innovation[edit]

There are few types of innovation (R.P. Jayani Rajapathirana 2018, p. 46):

  1. Product innovation.
  2. Process innovation.
  3. Organizational innovation.
  4. Market innovation.

Policies of innovation[edit]

It is possible to divide three policies of innovation (Jan Fagerberg 2018, p. 1568):

  • Eco-innovation policy,
  • Transformative innovation policy,
  • Mission-oriented policy.

References[edit]

Author: Olga Marmuszewska