Difference Between Entrepreneurship And Innovation

What is Entrepreneurship?

Entrepreneurship is an activity of the process, in general the following entries than one occasion, one or more proactive person, context, innovation, risk and organizational value resources, new products or processes, profit or gain and growth. Entrepreneurship is developing a business from start - give an idea into a profitable business. But while the definition of the spirit of enterprise as simple as possible, the performance is much more difficult. Entrepreneurship is the travel opportunities for exploration and risk management to create value for the benefit and / or social. An entrepreneur is someone who may have an idea, if it comes to a product and / or service, and have the ability, the will and the courage

Is there really a difference between entrepreneurship and innovation? In a book on the two research traditions refer respectively to entrepreneurship and innovation, we need to clarify the relationship between these concepts. In the tradition of Schumpeter, the entrepreneur is the hero of dynamic capitalism. The employer usually makes new combinations, new products, new markets, new materials and new forms of organization (Schumpeter 1934). Entrepreneurship and innovation are almost synonymous. However, based on the work of Schumpeter (Schumpeter 1943), we must distinguish between two types of competition, often called Schumpeter Schumpeter Mark I and Mark II. In Mark I, they are entrepreneurs and small businesses who are responsible for innovation. In competition Schumpeter Mark II dominate large oligopolies. Innovation is carried out in the R & D laboratories and entrepreneurship has become routine in a management bureaucracy. Innovation is independent of entrepreneurship. Innovation is essential for modern theories of growth and development (Verspagen 2005). As well as traditional factors such as cost, product innovations and process technology are key to the success and competitiveness of the company. Competition in the global economy has become increasingly knowledge-based. Even in so-called traditional sectors such as textiles, leather and innovation of food processing and technological progress, it has become the key to growth (see Mytelka 1999). The same goes for service industries such as wholesale and retail, financial services and ICT services. Innovation is also closely linked to changes in the structure of the economy, technological modernization of production, and go to activities with higher added value in global value