Innovation is the creation of better or more effective ideas, methods, or services. Technological change spurs economic growth and general well-being by enabling better utilization of existing resources and by bringing about new and better products. Technological change can spur economic growth by bringing about better use of existing resources, new and better products. Change can bring about uncertainty and resistance. In a world where innovation and change is the norm, to excel. Innovation has been responsible for demise and creation of industries. Most companies that are able to foster a culture that embraces new technologies and are able to commercialize these new innovations rapidly will remain competitive. Those that can’t understand or refuse to adapt eventually will die out.
The pace of innovation is rapidly growing due to the speed at which information is able to be disseminated, encouraging new ideas. With the growing number of venture capitalists and the ability to tap into this financial resource, those who have good ideas and the ability to innovate, are no longer hampered by the need for huge amounts of capital. Venture capitalists, unlike banks, are more concerned with a business’ potential rather than their collateral, thus making it easier for entrepreneurs to get their ideas into play.
“In 1942, Joseph Schumpeter coined the term “creative destruction” in his book Capitalism, Socialism, and Democracy. Schumpeter theorized that capitalism sparks entrepreneurship and that the technological progress of a state depends on its entrepreneurs”. Innovation disrupts the status quo making the old ways of doing business obsolete. Many businesses cannot change or find it difficult to reinvent themselves. “Disruption is basically about breaking the rules and challenging conventions to come up with something entirely new—a concept not limited to advertising” Drub, J. (1996). Jean-Marie Drub introduced the concept of creative disruption in 1996 in...
References: Hisrich, R.D., Peters, M.P., & Shepherd, D.A. (2010). Entrepreneurship (8th ed.). New York, NY: McGraw-Hill Irwin.
Bruce, B., Peyton, J., and Batson, T., Innovation and Social Change, Chapter 1 (pp. 9-32 in Network-based classrooms: Promises and realities, Cambridge University Press, New York, 1993). Retrieved from http://people.lis.illinois.edu/~chip/pubs/nbc/innovation/index.html
Vedpuriswar, A., Chowdhary, N., and Ghori, A. Managing Technological Innovations. http://www.sqi-inc.com/ic/Univ?action=AttachFile&do=get&target=managing_tech_innovations.
Please join StudyMode to read the full document