1. Innovation is important for companies to survive as competitors will develop new products that change the competitive landscape. Businesses must adapt and evolve. 2. Innovation has been studied across disciplines like economics, business management, and organizational behavior to understand how science and technology impact economic growth. Studies examined knowledge generation, development of products/processes, and commercialization. 3. The innovation process involves an economic perspective, business strategy perspective, and examining internal organizational activities and individuals who are key to defining problems and having ideas that lead to innovations.

3. General overview of the innovation process Other firms Interaction The firm’s innovating architecture Technology and product effects The firm’s Individuals functions Interaction Knowledge and technology providers MICRO ENVIRONMENT MACRO ENVIRONMENT Effects

4. 5. Definition of Innovation: Inventions are new discoveries, new ways of doing things, and that products are the eventual outputs from the inventions, that process from new discovery to eventual product is the innovation process. 6. Entrepreneurship: It is the process of planning; organizing, operating, and assuming the risk of a business venture. It is the analysis of the role of the individual entrepreneur that distinguishes the study of entrepreneurship from that of innovation management. 7. Innovation and Invention: Innovation is not a single action but a total process of interrelated sub processes. It is not just the conception of a new idea, nor the invention of a new device, nor the development of a new market. The process is all these things acting in an integrated fashion.

5. If the idea seems new and different to the individual, it is an innovation. The following simple equation helps to show the relationship between the two terms: Innovation= theoretical conception + technical invention + commercial exploitation Innovation is the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new or improved product or manufacturing process or equipment Creativity : the thinking of novel and appropriate ideas. Innovation : the successful implementation of those ideas within an organization.

7. 10. Conceptual Framework of Innovation: Creation of new Technology development Consumers express knowledge, dominated dominated by organizations their needs and by universities and wants through the large science-based consumption of organizations products Science and technology Technological Needs of the base development the market

8. 11. Models of Innovation: 1. Linear Models Technology push Research and Manufacturing Marketing User Development Market pull Marketing Research and Manufacturing User Development There are two basic variations of this model for product innovation. First, and most crudely, there is the technology driven model often referred to as ‘technology push’. Due to certain limitations, the second model, the ‘market pull’ model of innovation was evolved. The customer –need model emphasizes the role of marketing as an initiator of new ideas from close interactions with customers. This, in turn, are conveyed to R&D for design and engineering and then to manufacturing for production.

9. 2.Simultaneous coupling model Manufacturing Research and Marketing Development The model suggests that it is the result of the simultaneous coupling of the knowledge within all three functions that will foster innovation. Furthermore, the point of commencement is not known in advance. 3. Interactive model of innovation The model develops the above idea and links together the technology-push and market-pull models. It emphasizes that innovations occur as the result of the interaction of the market place, the science base and the organization’s capabilities.

10. Latest sciences and technology Advances in society TECHNOLOGY PUSH Idea R&D Manufacturing Marketing Commercial product MARKET PULL Needs in society and the marketplace 12. Innovation as a management process a) A response to either a need or an opportunity b) A creative effort that if successful results in the introduction of novelty c) The need for further changes

11. 13. Innovation Management Framework External inputs: macro factors competition Organization and business strategy R&D Organization’s Marketing knowledge base accumulates External inputs: knowledge External inputs: science and tech. over societal needs, dev., competitors, time competitors, suppliers, customers, distributors, university depts. customers strategic alliances

12. Innovation is extremely complex and involves the effective management of different activities. It is precisely how the process is managed that needs to be examined. A framework presented in the figure above helps to illustrate innovation as a management process. It identifies three main functions: marketing, research and manufacturing and business planning. Historical studies have identified these functions as the most influential in the innovation process. 14. Organizational Heritage The center of the framework is represented as organizational heritage, some-times referred to as organizational knowledge base. It represented a combination of the organization’s knowledge base and the organization’s unique architecture. It represents for many firms a powerful competitive advantage that enables them to compete with other firms. This framework is used as a navigational map to help guide this complex field of study.