Innovation And Entrepreneurship Research

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Introduction Innovation In the past years of knowledge on innovation and its effect on entrepreneurship, a massive variety of literature has been presented and researched on this specific topic innovation. Innovation as the name suggests refers to thinking out of the box in other words being creative or innovative. Innovation in terms of business refers to creation of products, services and processes in a more effective and efficient way and at the same time establishing a culture or environment capable to absorb the creativity (Crumpton, 2012). In Kotler(1997) words it is a method/process/system/product/service which is either significantly new or totally improved and also has been a complete success in the market. Entrepreneurship The word…show more content…
In order to be an entrepreneur, an individual must create something new and different from the existing products/services or of transmuted value. The success of any Innovation is built on the strengths and work of the entrepreneur executing it. In terms of (Schumpeter and Clemence, 1989) an entrepreneur plays a major role in the ‘Creative destruction’ process, by constantly assimilating unused knowledge in order to set up improved production functions and forms for the production and marketing the new products. Thus for any entrepreneur to demonstrate innovation as its key strength, it must execute the concept of the idea into practical usage by infusing sufficient resources such as capital and undivided support of the institutional leadership. (Bessant and Tidd, 2007) discuss in book Innovation and entrepreneurship talk about how Entrepreneurship and innovation can’t be assumed to be all about a bright idea. Entrepreneurship is usually assumed to be about raising resources and developing a business plan to an already existing ides or concept. However, the tougher part is indeed the identification, assessment and refining the newly born concept/idea into something more concrete. By doing an early procedural planning, most of the weaknesses which would lead into problems in the later stage can be encountered in advance by the…show more content…
In the raging markets of today’s economy, innovation is considered to be a tonic for the survival of all sized businesses. The growth and survival of firms are directly linked to their ability of continuous innovation. The above literature also proves the importance of SMEs on the overall economic growth Bowen and Ricketts, 1992; Henderson, 2002). SMEs are the most evaluated firms under the radar of growth by innovation. (Oke, Burke and Myers, 2007) suggests that one of the major reason for SMEs to come into existence is the development of radical innovation. Though research suggest that entrepreneur’s ability to act as an innovator and analyse the external environment for decision making plays a major role in the innovation process of such SMEs. Research conducted by (printed article) on the question of a link between the growing sales turnover of the SMEs and the innovation, clearly establishes the relation between the two by endorsing the importance of innovation and providing further backing for encouraging the innovation in the upcoming SMEs. It has also been mentioned that the regular governmental initiatives and policy alterations to promote radical innovation in SMEs inclines these SMEs towards further development by encouraging them. Such support promotes the SMEs to enter global markets and cross the geographical boundaries
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