Innovation and Entrepreneurship

Unit 2
 Introduction to Innovation:
• Innovation carries with it the idea of something new.
• Innovative people are expected to come up with ‘bright ideas’,
to have a novel way of looking at things, to ‘think outside the
box’.
• If a product is seen to be innovative, its design or its function
or both is new and improved over that which has previously
been available and confronted with a new and better way of
doing things.
• Most often, an innovation brings with it a monetary return for
the innovator, and that return comes about because a
competitive advantage has been gained in the marketplace.
• While innovation often brings a win to somebody, it may also
mean somebody else will lose.
 Examples of Innovation
 DOS to Windows and Android
 Mechanical watch to quartz watch to a digital watch
 Ordinary CRT TV to a flat screen TV
 Desktop PC to a laptop PC to a tablet PC
 Propeller engine to a jet engine
 Horse Cart to IC engine vehicle to EV vehicle
 Mobile handset with camera, FM radio,MP3 player
 Swiss army knife
 Cloud Computing
 Additive Manufacturing
 Innovation and Entrepreneurship
Schumpeter has firmly expressed his opinion that
the function of entrepreneurship is innovation.
• Innovation of new product.
• Innovation of new technology.
• Innovation of new process of
production methods.
• Exploration of new markets.
• Searching for the new sources and
supply.
• Innovation of industrial reconstruction
 Drivers for innovation
Financial pressures to reduce costs, increase efficiency, do
more with less, etc
Increased competition
Shorter product life cycles
Value migration
Stricter regulation
Industry and community needs for sustainable development
Increased demend for accountability
Demographic, social and maket changes
Rising customer expectations regarding service and quality
Changing economy
Greater availability of potentially useful technologies coupled
with a need to exceed the competition in these technologies