Department of Entrepreneurship

Faculty of Management Studies and Commerce

University of Sri Jayewardenepura

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Creativity and Innovations
 Content

• Creativity
• Innovations
 Innovations and inventions
 Types of innovations
 Innovation models
 Stakeholders in the innovation process
 Incentives for innovations
• Importance of creativity and innovation
Creativity
 Creativity Cont…

 the use of imagination or original ideas to create

something; inventiveness.
 The ability to develop new ideas and to discover
new ways of looking at problems and
opportunities
 Thinking new things
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Wonderful Human Brain
 Creative Idea Generation Techniques

• Brainstorming
• Focus group
• Library and internet search
• Customer advisory board
• Day in the life research

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 Obstacles for Creativity
• Negativity: thinking you are not creative
• Fear of failures and punishing failures
• Efficient meetings with tight agenda
 Lack of quality thinking time and experiences to draw
from
• High Formalization (Over-conformance with rules
and regulations, a lack of freedom to develop)
• Making assumptions that are not necessarily
true
• Applying too much logic and not listening to the
depth mind
 Obstacles for Creativity Cont…

• Centralization
• Implementing creative ideas without
acknowledging and rewarding adequately the
innovator
• Looking for one best solutions
• Reinforcing a culture of inferiority
• Detail orientation
• Be too much analytical, logical and rational
• Underestimating employees
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 Myths about Creativity

• It’s rare
• Only high IQs have it
• It’s in your right brain
• It can’t be studied
• It’s mysterious
 Test of Creativity

If the god gives you a third eye where do you fix it?

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 Videos to Watch

• https://www.youtube.com/watch?v=xEAOvFG1AmM
• https://www.youtube.com/watch?v=FAHlYLvIz00
 Activity : Creativity Vs Innovation

Five frogs
were on a
log, three
decided to
jump off.

How many frogs are now on the log?

Innovation
Being different
Being different
 Innovation Cont…

Innovation is doing new things or old things in new ways

A key function in the entrepreneurial process and the specific

function of entrepreneurship

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 Innovation Cont…
• Innovation is the process of development and /or
exploitation of new ideas or behaviours and adaption
for the betterment of the society
(Amabile, 1988)

• Psychological perspective: innovation is a social

process which focus on intentional introduction and
application of ideas, processes, products or
procedures within an individual, a group, or an firm,
designed to significantly benefit the individual, the
group, organization or wider society and it should be
new to the relevant unit of adoption
(West & Farr, 1990)
 The Difference between Invention and
Innovation
• Invention is the creation of new products, processes, and technologies not previously
known to exist. These are entitled for patent right. Eg. Electric bulb by Edison

• Innovation is the transformation of creative ideas into useful applications by combining

resources in new or unusual ways to provide value to society for or improved products,
technology, or services.
Eg. Odiris Coconut Scraper
Use of Coconut Scraper at Laugfs Supermarket.

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 The Difference between Invention and
Innovation Cont…
• ‘invention is the first occurrence of an idea for a new product or
process, while innovation is the first attempt to carry out into
practice’
(Fagerberg et al., 2005)
 The Difference between Invention and
Innovation Cont…

Innovations

Inventions

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The Nobel Prize in Physics 2010

Andre Geim Konstantin Novoselov

The Nobel Prize in Physics 2010 was awarded jointly

to Andre Geim and Konstantin Novoselov "for
groundbreaking experiments regarding the two-
dimensional material graphene"
 A broader classification
1. Radical Innovations
2. Incremental Innovations

Types of Innovation

Classification by 4 Ps of Innovation -
Schumpeter Classification
1. Product 1. Product
2. Process 2. Process
3. Input 3. Position
4. Technology 4. Paradigm
5. Organization
 Types of Innovation Contd…

A broader classification
1. Radical Innovation

• It is something new to the world

• Breakthrough Innovation and Discontinuous Innovation are
synonyms
• The term “Disruptive Technology” is used to identify radical
technical innovations
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 Types of Innovation Contd…
1. Radical Innovation Cont…

• Radical innovation upsets the organization’s or the

industry’s existing business model

• Disruptive technologies displaces the established

technology

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 Types of Innovation Contd…
1. Radical Innovation Cont…

Radical innovation can be defined as an innovation with one or more of

the following characteristics
 An entirely new set of performance features
 Improvements in known performance features of five times or
greater
 A 30% or greater reduction in cost
 Changes the basis of competition

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 Types of Innovation Cont…

2. Incremental Innovation
Exploits existing forms or technologies
• It either improves upon something that already
exists or reconfigures an existing form or
technology to serve some other purpose
Pentium IV

Pentium III

Pentium II

Pentium I

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 Types of Innovation Contd…
• Product
• Process
• Input
• Technology
• Organization
(Schumpeter, 1934)

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 Types of Innovation Contd…
Apple AirPods
4 Ps of innovation
1. Product Innovation
Introduces a new product or improves a current
product that is already offered to the user

2. Process Innovation
Innovates the way in which products are created
and/or delivered to the user
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 Types of Innovation Contd…
4 Ps of innovation

3. Position Innovation.
This involves relocation
of the user’s perception about a certain product

4. Paradigm Innovation.
This relates to the mental models, which define
what a certain business is all about
Business would be redefined
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 Stakeholders in the Innovation Process
• Universities, including research scientists,
university administrators, and designated
officers of technology transfer
• Entrepreneurs, including start-up companies and
venture capitalists
• Incumbent corporations
• Potential technology adopters and downstream
producers who will use the technology
• Government regulators
• Environmental and other special interest
organizations
• Consumers
 Incentives for Innovations

• Patents: Awards monopoly rights for 15-20 years

 Patent protection allows publication of research findings
that leads to innovations.
 Patent rights (for certain applications) can be transferred.
 Patents are valid only where they are registered.
• Copyright protection: Pertains to books, brand names,
and the media.
• Trade secrets: Protects against thefts.
• Plant breeders’ right: Allows exclusive sales of
varieties and allows farmers to reuse seeds.
• Prizes and awards: Awarded to winners of a contest
for finding a technical solution to a problem.
Importance of creativity and innovation
Importance of Creativity and Innovation

Creativity and innovation is the key to

sustainable growth and development of the
individuals and groups, firms, and the country
as a whole!
Importance of Creativity and Innovation
National development
and social wellbeing

Firms’ competitive
advantage and
sustainable growth

Creativity and
innovativeness of
individuals groups
 Danger of Not being Innovative

• Without innovation companies stop changing

• This is OK in static markets, but few organizations
operate under such conditions!!

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 Danger of Not being Innovative

• For most it is also not possible to compete on

cost alone,
• and so to survive organizations need to
differentiate,
• and to differentiate they need to innovate.
• You do not want to be the most efficient
producer of what you do today if nobody
wants it tomorrow!

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 Innovativeness as a Core-Competency

• A unique ability that cannot be easily imitated

• Core competencies are what give a company
one or more competitive advantages, in
creating and delivering value to its customers
• Also called core capabilities or distinctive
competencies

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 Innovations as a Competitive Advantage

• An advantage that a firm has over its competitors,

allowing it to generate greater sales or margins
and/or retain more customers than its competition.
• Competitive advantages give a company an edge over
its rivals and an ability to generate greater value for
the firm and its shareholders.
• The more sustainable the competitive advantage, the
more difficult it is for competitors to neutralize the
advantage.

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Thank You!

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