In
economics, business and government policy,- something
new - must be substantially different, not an insignificant
change. In economics the change must increase value,
customer value, or producer value. Innovations
are intended to make someone better off, and the
succession of many innovations grows the whole
economy.
The
term innovation may refer to both radical or
incremental changes to products, processes or
services. The often unspoken goal of innovation
is to solve a problem. Innovation is an important
topic in the study of economics, education, business, technology, sociology,
and engineering.
Since innovation is also considered a major driver
of the economy, the factors that lead to innovation
are also considered to be critical to policy makers.
In
the organisational context, innovation may be linked
to performance and growth through improvements
in efficiency, productivity, quality, competitive
positioning, market share, etc. All organisations
can innovate, including for example hospitals,
universities, and local governments.
While
innovation typically adds value, innovation may
also have a negative or destructive effect as new
developments clear away or change old organizational
forms and practices. Organisations that do not
innovate effectively may be destroyed by those
that do. |
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