Innovation is the application of a new invention in a way that provides new technical, organizational or commercial benefits to a business. It aims to add value or provide an additional benefit to the company. Innovation is the foundation of entrepreneurship, since an entrepreneur need to be able to offer new ideas, produce new goods and provide new services in order to keep abreast of competition. Innovation is also the key to effective reorganization of a company. It is the process of creating a business that is radically different from the old structure, of creating a new way to produce, distribute or sell products
[...] The new needs of one act as an incentive that encourages new responses and opportunities for the other to develop new products. Innovation does not occur in isolation. D. The marginal propensity to innovate The marginal propensity to innovate refers to the share in income that is allocated to further research and development. Large firms therefore have PMI's that are too large for SMEs to match, as SME's do not allocate an annual budget for R&D. Chapter Circumstances conducive to innovation Section 1 - the participatory approach to business and aspirations of the market Innovation is the process that leads to the generation of original and useful ideas, by an individual or a group working together. [...]
[...] Ceasing production due for maintenance purposes on a production site can be very expensive. Studies in the United Kingdom on the cost effectiveness of suggestion systems suggest that these devices have a minimum ratio of return on investment of three to one during the first two years of implementation. The measurement of activities related to cost reductions is easier than the measurement of strategies adopted for safety, customer relations or improved working conditions 2. Unexpected gains: Anthony Heron Renault observes that the payouts of planned expenditures are often not been achieved because of participatory innovation. [...]
[...] It is common knowledge that upgraded equipment, or a new production schedule in a plant, can generate substantial profits by reducing costs and thus improving the competitiveness of the company Organizational innovation: Effective innovation can transform an organization. For example, the arrangement of production workshops on Just-In-time inventory strategies enables organizations to adjust quickly to fluctuations in demand, while minimizing storage. This may thus be viewed as a major innovation in the organization as it requires teamwork and flexibility. Employees must be deeply involved in production, as well as in the search for solutions to unforeseen changes. [...]
[...] In the absence of a patent, the competition catches up with he idea very soon The advantage of an attractive new product: An example was the invention of the microwave oven was a revolutionary innovation in the mark The high cost of innovation has made it necessary for businesses to apply for government assistance, form mergers or opt for other means to fund their research: The government directly and indirectly encourages innovation through financial assistance such as increased public funding for research, and tax rebates on money spent on research activities Mergers: GIE card which includes several banks is responsible for conducting a study on the use of smart cards (organizational innovation). [...]
[...] Expenditures for development are often scattered and are thus impossible to account for, unlike expenses incurred in radical innovation that are supported by centers or organized by research departments. Because the practice of allocating expenses directly for research and development & was prevalent in large companies that maintained official data, such patents, it was long thought that only large firms were the source of innovation. o Economic Benefits: 1. Cost reduction: When the target of innovative measures is cost reduction, the measures to be adopted are easily identified. [...]
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