Innovation in Local Economies: Germany in Comparative Context
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In such networks of innovation the users or communities of users can further develop technologies and reinvent their social meaning. One technique for innovating a solution to an identified problem is to actually attempt an experiment with many possibile solutions. This technique is sometimes used in pharmaceutical drug discovery. Thousands of chemical compounds are subjected to high-throughput screening to see if they have any activity against a target molecule which has been identified as biologically significant to a disease. Promising compounds can then be studied; modified to improve efficacy, reduce side effects, and reduce cost of manufacture; and if successful turned into treatments.
This is used by major sites such as amazon. Programs of organizational innovation are typically tightly linked to organizational goals and objectives, to the business plan , and to market competitive positioning. One driver for innovation programs in corporations is to achieve growth objectives. As Davila et al. Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results". One survey across a large number of manufacturing and services organizations found, ranked in decreasing order of popularity, that systematic programs of organizational innovation are most frequently driven by: These goals vary between improvements to products, processes and services and dispel a popular myth that innovation deals mainly with new product development.
Most of the goals could apply to any organisation be it a manufacturing facility, marketing firm, hospital or local government. Whether innovation goals are successfully achieved or otherwise depends greatly on the environment prevailing in the firm.
Conversely, failure can develop in programs of innovations. The causes of failure have been widely researched and can vary considerably. Some causes will be external to the organization and outside its influence of control. Others will be internal and ultimately within the control of the organization. Internal causes of failure can be divided into causes associated with the cultural infrastructure and causes associated with the innovation process itself. Common causes of failure within the innovation process in most organizations can be distilled into five types: Diffusion of innovation research was first started in by seminal researcher Gabriel Tarde , who first plotted the S-shaped diffusion curve.
Tarde defined the innovation-decision process as a series of steps that includes: Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. This process has been proposed that the life cycle of innovations can be described using the ' s-curve ' or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point, customers begin to demand and the product growth increases more rapidly.
New incremental innovations or changes to the product allow growth to continue. Towards the end of its lifecycle, growth slows and may even begin to decline.
In the later stages, no amount of new investment in that product will yield a normal rate of return. The s-curve derives from an assumption that new products are likely to have "product life" — i. In fact, the great majority of innovations never get off the bottom of the curve, and never produce normal returns. Innovative companies will typically be working on new innovations that will eventually replace older ones.
Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an emerging technology that currently yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.
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Measuring innovation is inherently difficult as it implies commensurability so that comparisons can be made in quantitative terms. Innovation, however, is by definition novelty. Comparisons are thus often meaningless across products or service. They categorized these measures along five dimensions i. There are two different types of measures for innovation: The measure of innovation at the organizational level relates to individuals, team-level assessments, and private companies from the smallest to the largest company. Measure of innovation for organizations can be conducted by surveys, workshops, consultants, or internal benchmarking.
There is today no established general way to measure organizational innovation. Corporate measurements are generally structured around balanced scorecards which cover several aspects of innovation such as business measures related to finances, innovation process efficiency, employees' contribution and motivation, as well benefits for customers. For the political level, measures of innovation are more focused on a country or region competitive advantage through innovation. In this context, organizational capabilities can be evaluated through various evaluation frameworks, such as those of the European Foundation for Quality Management.
Some people consider the Oslo Manual complementary to the Frascati Manual from The new Oslo manual from takes a wider perspective to innovation, and includes marketing and organizational innovation. These standards are used for example in the European Community Innovation Surveys. Whether this is a good measurement of innovation has been widely discussed and the Oslo Manual has incorporated some of the critique against earlier methods of measuring. The traditional methods of measuring still inform many policy decisions.
Innovation is starting to decline due to the newly introduced immigration policies. For example, an institution may be high tech with the latest equipment, but lacks crucial doing, using and interacting tasks important for innovation. An Australian academic developed the case that national comparative cost-effectiveness analysis systems should be viewed as measuring "health innovation" as an evidence-based policy concept for valuing innovation distinct from valuing through competitive markets, a method which requires strong anti-trust laws to be effective, on the basis that both methods of assessing pharmaceutical innovations are mentioned in annex 2C.
Several indices attempt to measure innovation and rank entities based on these measures, such as:. Many research studies try to rank countries based on measures of innovation. Common areas of focus include: The left ranking of the top 10 countries below is based on the Bloomberg Innovation Index. John Smart criticized the claim and asserted that technological singularity researcher Ray Kurzweil and others showed a "clear trend of acceleration, not deceleration" when it came to innovations. Innovation as a tool for development is usually focused on developing countries, but a burgeoning literature has relevance for innovation as a tool for development in developed countries too, particularly with respect to poverty.
Recent research has reaffirmed these findings, but by discerning a significant and negative association between county poverty rates and county patent counts across the US between Given the noticeable effects on efficiency , quality of life , and productive growth , innovation is a key factor in society and economy. Consequently, policymakers have long worked to develop environments that will foster innovation and its resulting positive benefits, from funding Research and Development to supporting regulatory change, funding the development of innovation clusters, and using public purchasing and standardisation to 'pull' innovation through.
For instance, experts are advocating that the U. Because clusters are the geographic incubators of innovative products and processes, a cluster development grant program would also be targeted for implementation.
By focusing on innovating in such areas as precision manufacturing , information technology , and clean energy , other areas of national concern would be tackled including government debt , carbon footprint , and oil dependence. Economic Development Administration understand this reality in their continued Regional Innovation Clusters initiative. Also, such grants should be better procured to metropolitan areas , the essential engines of the American economy.
Furthermore, Russia's innovation programme is the Medvedev modernisation programme which aims at creating a diversified economy based on high technology and innovation. Also, the Government of Western Australia has established a number of innovation incentives for government departments. Landgate was the first Western Australian government agency to establish its Innovation Program.
From Wikipedia, the free encyclopedia. For other uses, see Innovation disambiguation. Government policies [ edit ] Given the noticeable effects on efficiency , quality of life , and productive growth , innovation is a key factor in society and economy. Journal of Education for Business. Journal of High Technology Management Research. Towards innovation measurement in the software industry.
Journal of Systems and Software 86 5 , — Challenges, Opportunities, and Dilemmas. A critical review and practical recommendations". Capitalism, Socialism, and Democracy 6 ed.
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An integrative model of creativity and innovation implementation in work groups". An International Review , p. Retrieved 13 October Harvard Business School Press. It has the potential to create new foundations for our economic and social systems. Health Care Management Review. Center for American Progress Report. The Journal of Innovation Impact. Archived from the original PDF on 12 October Retrieved 3 December Research, Invention, Innovation and Production: