Innovation Flashcards
What is Innovation?
The process and outcome of creating something new, which is also of value
Innovation comes about through what according to Schumpeter?
New combinations of resources and capabilities
Innovation is a source of what?
Competitive advantage, especially in turbulent and highly competitive environments (dynamic)
Features of innovation?
Can charge high prices
Clear example of differentaiton
What are the four types of innovation?
Product innovation
Process innovation
Service innovation
Organisation innovation
What is product innovation?
Introduction of new significantly improved products that generate new customer value
What is process innovation?
Implementation of new or significantly improved production or delivery methods
What is service innovation?
Introduction of new significantly improved services that generate new customer value
What is organisational innovation?
New ways in which people manage and share resources
Innovation capability are on of the most important types of firm capability to….
Achieve competitive advantage
IBV, compete in markets
Differentiation strategy
Examples of emerging economies
Brazil
India
China
Russia
Why are emerging markets attractive for innovation?
Untapped markets
Ample supply of cheap labour
What do firms require to exploit opportunities in emerging markets?
Transfer of technology and know-how from home base to emerging economy
What are the risks of innovation in an emerging market?
- Inadequate intellectual property rights protection, facilitates imitation
How do firms deal with threat of imitation in emerging markets?
By choosing an appropriate entry mode
e.g. one that prohibits spill overs
