The Importance Of Innovation

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Innovation has been defined in various ways, as a consequence of different perspectives of researchers, economists, business guru’s and the likes. Some are of the opinion that innovation can only occur when there is an invention of a new product or service, while others believe that innovation is not just about the invention itself, but also about making the invention better (Tidd & Bessant, 2009).
The innovation unit of the department of trade and industry states that “innovation is the successful exploitation of new ideas” (Beacham, 2006). According to Rothwell & Gardiner, (1985) “innovation does not necessary imply the commercialization of only major advance in the technological state of the art, but it includes the utilization of even small-scale changes in technological know-how) an incremental innovation” (Rothwell & Gardiner, 1985)
The explanations of innovation may differ in their wordings but the main point which is stressed is “the need to complete the development and exploitation aspects of new knowledge, not just its invention” (Tidd & Bessant, 2009).
Innovation is highly significant at all levels of the spectrum from the individual enterprise to the increase of national economic growth (Baumol, 2002). It has become a relevant strategy for government economic policies; for example, the UK office of Science and Innovation sees it as “the motor of the modern economy, turning ideas and knowledge into products and services” (Department of Trade and Industry (DTI),
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