ASSIGNMENT-1

Innovation will get the economy moving! Comment?

This assignment contains following parts

1. introduction

2. discussion

3. conclusion

INTRODUCTION

The term innovation derives from the Latin word innovatus, which is the noun form of innovare "to renew or change," stemming from in-"into" + novus-"new". Although the term is broadly used, innovation generally refers to the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society. Innovation differs from invention or renovation in that innovation generally signifies a substantial positive change compared to incremental changes.

Innovation is second step of invention. innovation is a commercialization of invention.by converting it into a commercialized product ready for market by using new methods and techniques.

"Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations." - Steve Jobs

DISCUSSION

innovation is the catalyst to growth. With rapid In business and economics in transportation and communications over the past few decades, the old world concepts of factor endowments and comparative advantage which focused on an area’s unique inputs are outmoded for today’s global economy. Now, as Harvard economist Michael Porterpoints out competitive advantage, or the productive use of any inputs, which requires continual innovation is paramount for any specialized firm to succeed. Economist Joseph Schumpeter, who contributed greatly to the study of innovation, argued that industries must incessantly revolutionize the economic structure from within, that is innovate with better or more effective processes and products, such as the shift from the craft shop to factory. He famously asserted that “creative destruction is the essential fact about capitalism. In addition, entrepreneurs continuously look for better ways to satisfy their consumer base with improved quality, durability, service, and price which come to fruition in innovation with advanced technologies and organizational strategies..

In the organizational context, innovation may be linked to positive changes in efficiency, productivity, quality, competitiveness, market share, and others. All organizations can innovate, including for example hospitals, universities, and local governments

ADVANTAGES:-

Innovation helps in finding new products and processes this will leads to cost reduction.

Innovation provides entry to new companies,this helps in increasing competition.this competition ultimately helps the customers.

innovation provides employment to trained workforce.this will increase their income and with this economic growth is achieved.

with the help of innovations all natural resources of a country is fully utilized

innovation helps in increasing the efficiency of workforce by devolping new and easy techniques of production process.

innovation helps in creating new markets,new product ranges and reduced environmental damage

DISADVANTAGES:-

Innovations leads to mechanization of work.this will leads to retrenchment of labour, this unemployment became a cause of recession.

Innovations is used as a tool of Planned Obsolescence.

Innovations in the field of war equipments like nuclear bomb, missiles etc. are very harmful for mankind.

conclusion

innovation definitely helps in economic growth because if there is no innovation there is no improvement in products and in manufacturing processes so there is no variety of products in the market, then there is no scope for new companies to enter into the market,this will leads to less competition in the market and there is an ultimate loss of customer due to monopoly.if there is more innovations more mechanization in the economy.this willl leads to unemployement.

So in nutshell I am with innovation that provides growth to the economy and support healthy enviournment.

(sources- wikipedia, google, google images,ask.com and b.com 3^nd year’s book fundamentals of entrepreneurship)