Innovation Variables

The concept of innovation refers to the search for development, adaptation, imitation and
adoption of technologies that are new to a specific context. An innovation system is therefore a
network of organizations within an economic system that are directly involved in the creation,
diffusion and use of scientific and technological knowledge, as well as the organizations
responsible for the coordination and support of these processes.

Three Innovative variables that stimulate innovation are:

Organizational structure. Organizational structure deals with the framework which defines the
relation between people and position in the organization. It is defined as the formal system of
tasks and reporting relationships that controls, coordinates and motivates employees that can
increase innovative performance by enabling coordination among different functional units,
increasing the level of cost effectiveness, decreasing uncertainty and minimizing mistakes.

Culture. Culture drives innovation by creating an environment in which innovation is a top

priority and employees feel valued. When employees are happy and valued, they bring results. It
is also the kind of work environment that leaders cultivate in order to nurture its people.

Human Resource Practices. It is simple creating an environment that is necessary for successful
innovation. It has also great impact with employee’s abilities and performance.