Analysis of Innovation and Economic Growth

This assignment requires students to analyze the concept of innovation and its relationship with economic growth. It involves reviewing recent research papers, studies, and books that explore the impact of innovation on economic development. The assignment aims to provide a comprehensive understanding of innovation and its role in driving economic growth.

ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................1
TASK...............................................................................................................................................1
Difference between invention and innovation............................................................................1
Importance of innovation in an organisation..............................................................................2
PROJECT 2......................................................................................................................................6
TASK 2............................................................................................................................................6
Overview/background of company and the problem..................................................................6
Scoping of ideas for new products..............................................................................................7
Identification of solution of the problem....................................................................................8
Determining techniques of testing effectiveness of new product..............................................9
The way company can protect intellectual property rights of a new drink...............................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurs are those who tend to work separately rather than working in a group or
with others. They mainly run small business, by presumptuous the risks that can affect the firm
in their future proceedings. Therefore, entrepreneurs are considered as those who implement new
an innovative ideas in their business so that they can sustain in the market area for a longer
period of time (What is innovation?, 2018). Entrepreneurship is a process that is used for
designing and making plan and it depends on the capacity and willingness of developing the
business. Risual is a small consultancy firm in United Kingdom and give legal advices to many
companies in order to implement strategies that will improve their brand image in front of
customers. The project will throw light on different types of entrepreneurial ventures and how it
is related to typology of entrepreneurship along with similarities and differences between both
entrepreneurial ventures is included in this report. Apart form this, various kind of approaches is
mentioned for example: frugal and innovation funnel so that to know the importance of small
business and business start ups to the growth of social economy. Characteristics traits and skills
of a successful entrepreneurs that differentiate them from from other business managers is
included by using relevant examples.
PROJECT 1
TASK
Difference between invention and innovation
With the change in course of time, small firms are increasing in rapid speed in UK. They
play some or other role in enhancing the economy of the country as they provide some sort of job
opportunities to many people (West and Bogers, 2014). During the period of recession there
might be a situation of decrease in number of staff members in big organisation and this will
enable small firm in selecting and purchasing power of person. Therefore, during that period
small firms can help the nation in stabling their economy by providing different occupation.
There is a lot of different between innovation and inventions and some of the points are
mentioned below to understand it in a better manner:
Innovation Invention
Innovation means making alterations in new or Invention is all about a new concept that is
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existing products so that its value in the market
can be increased. This will help them in
attracting more and more customers towards
their organisation. Therefore, it will assist a
company in adopting new opportunities.
based in fresh thoughts so that a best product
can be manufactured.
As this includes the process of valid changes s
that products can be made as per the needs and
wants of customers so that company can satisfy
their demands.
It is considered as one of the unique process
that helps an organisation in achieving their
targets right on time. For this, companies set
some objectives which can be attained an an
appropriate manner (Union, 2014).
In innovation, it is required that manager of the
organisation have ample amount of money
along with the knowledge of related to
particular field.
To make any innovative product it is require
that an individual have technical knowledge
and skills that they can utilise in further
activities and current trends.
Innovation help an organisation in making
some changes in entrepreneurship.
Fresh products are manufactured in this with
has not came in the market yet.
It requires practical application of innovative
ideas so that product can be manufactured in a
n appropriate manner.
Scientific knowledge and practical skills are
taken into considerations under invention.
Under innovation, changes are done according
to the current market situation so that it can
sustain in the market for a longer period of
time.
To invent any things, it requires a lot of
amount and time as well. Mostly many of the
organisation patent their commodity so as to
secure them form other rival companies.
Under this, all the items and services are
merged so that effective results can be
obtained.
Basically the concept of invention is based on
particular time period.
Importance of innovation in an organisation
Innovation is a concept that is optimised by many of the company and it enable them in
making alterations according to the current market situations. Apart form this, it shows
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appropriate path through which company can attain their objectives in specific time frame
(Norman and Verganti, 2014). It has been evaluated that modifications and implementation of
fresh ideas always provide an organisation a competitive advancement and as a result it enhances
in growth and productivity of a company. Risual is a firm that belongs to a service providing
sector and give solutions to various enterprise so that other organisation can make changes
according to the preferred choices (Lee, Kao and Yang, 2014). There are certain ways in order to
make innovation more appropriate and they are as follows:
Setting the baseline: This is basics from where entrepreneurs had to start, under this a
vision is set so that organisation have an overview about what things are required to be achieved
in limited period of time. This will enable them in performing the task in effectively and
efficiently. For attaining this, an individual must make proper strategies and plan of action so as
to accomplish the work in a systematic manner. Risual has incorporated hierarchy system in their
business operations which is assisting them in increasing their sales and productivity. Some of
the other ways which individual can use for completing the process of innovation are given
below:
 Evaluating vision for future proceedings
 Improving trust between employees and other superiors
 Capability of accepting new challenges
 Setting certain objectives and targets Encourage employees to work collaborately in order to achieve a common goal.
Closing the innovation gap: By implementing creative thoughts and innovative ideas,
gap between employees and superiors can be decreased. For this, organisation can use
communication tools and technologies so that a transparency can be maintained where every
individual will have equal opportunity in sharing their views and thoughts. Therefore, there main
aim is to encourage workers so that they can use their skills in providing better results to the
company. For this, managers of a company conduct training programs and seminars through
which individual can enhance their knowledge and skills which a person can use for operating
the business in an effective manner (Gawer and Cusumano, 2014). Therefore, a person must
have leadership skills so that he/she can motivate their team members for achieving the targets
and goals. Thus, it will minimise innovation gap in order to attain their desired objectives.
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Nurturing an innovation: Under this criteria, all the certain kind of strategies and plan of
action are formulated with the help of managers so that it can be implemented for innovating
new things in an effective way. With the help of this, new tools and technologies are used for
obtaining better outcomes and results. Applying new techniques will improve the performance
and maximum production and profit can be obtained in return. Through this excellent quality of
goods and services can be provided and this will enable them in attracting more and more
customers towards their organisation.
Importance of innovation to organisation:
Innovation plays a crucial role in achieving success and gradually increase the brand
image in front of their customers (Christensen, Raynor and McDonald, 2015). New and
innovative thoughts will help them in establishing their business in effective manner and this will
make them unique form other. Therefore, competitive advancement can be gained for a certain
period of time. Henceforth, by optimising proper used of technologies company can improve
their sales and profitability. Thus, during their initial years, it is important that entrepreneurs
make appropriate strategies which they can apply for getting effective results, this will help them
in garbing the attention of maximum number of people towards their company. Along with this,
innovation will provide lot of opportunities that an individual can avail. Hiring of new candidates
always help an organisation in performing their task in an effective manner. Therefore, to run a
business in a proper way it is important that they make strategies that can provide benefit in
crucial situations as well some of them are given below:
Product innovation: This is the first step that comes in mind while making innovation in
a product. Basically it is concerned with making changes in new or existing products so that its
market value can be increased. There are many small firms that are manufacturing their products
according to the current market situations and delivering best quality products to its customers.
Therefore, it is assisting them in pulling attention of more and more consumers. Thus, it is
enabling the company in giving tough fight to other rival organisation and helping them in
sustaining a better position at market place.
Process innovation: It is considered as a mixture of abilities and technology so that a
excellent quality product can be manufactured in order to deliver that to its customers. Therefore,
in this a product goes through a systematic steps in which raw material to converted into final
goods (Chesbrough, Vanhaverbeke and West, 2014). Thus, it is important that company follows
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a procedures that can give them maximum benefits and profit and sales can be increased through
this. Hence, innovation can influence an individual in such a way that they can add value in an
appropriate manner.
Position: Every company works for attaining a better position along with an increase in
sales and profitability. By providing excellent services and facilities an organisation can get into
a better position and sustain in that stage for a longer period of time (Bloom, Draca and Van
Reenen, 2016). Therefore, the role of manager is considered as an important part because they
are the one who develop strategies and plan of action which company follows for achieving a
better position. Henceforth, for capturing the market it is the responsibility of organisation that
all the goods that are manufactured are according to the needs and wants of customers and it will
assist them in increasing their brand image.
Paradigm: It is not necessary that all the strategies that are applied will give maximum
benefits. There might be a chance of changing the entire business model if it is not giving
appropriate results. Therefore, firm may adopt strategies adopted by other companies so as to
maintain their loyalty amongst customers. Thus, sometimes alteration may required in order to
satisfy the needs of customers appropriately. Henceforth, it is a possibility that company grab the
opportunities that are available to them for conducting business operations in a better manner.
Approaches with organisation including innovation and frugal:
Innovation funnel: This kind of approach is very appropriate in order to manage new
and fresh ideas in an effective manner. The main motive of this is to collect more and more ideas
form various sources so that it can be applied in further proceedings. It help the organisation in
making appropriate plan of action through which they can increase their sales and profitability.
Further this process is classified into 3 steps that are explained below:
The first step is considered moves very fast as in this a clear perspectives and objective
are made so that company have an overview of how to perform their task in an effective way.
Thus, in this reasonable understanding is required so that idea can be converted into reality. After
exploring all the thoughts the researcher tries to relate these objectives so as to get an idea.
The second step, undergoes a process of screening in which an individual relate the ideas
so as to evaluate whether it can be achieved or not (Bain and Kleinknecht, 2016). After this, an
idea is selected amongst all the other thoughts which can give them maximum benefits. Under
this, the compatibility of the product is also measured so that nature of customers can be
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identified. Other than this, it is important that managers look out for for opportunities from
where they can improve their sales and profitability at the same time.
In the last stage that is considered as a narrow segment of a funnel in which conversion of
raw material into final goods is done so that it can be delivered right on time to its respective
customers (Anderson, Potočnik and Zhou, 2014). This is a simple concept and most of the
organisation adopt it for getting a better result. Although it helps a company in attaining a better
position but discourage the creativity but it favours an individual with safe ideas.
Frugal innovation: It is an approach that is used by most of the organisation so as to
minimise the complexity that are related to the production of goods and commodities in a
company. Therefore, it is concerned by most of the company in order to reduce the unwanted
cost so that it can be applied in other activities. It will assist them in producing goods that are
superior in quality and according to the needs and wants of consumers. Henceforth, it is required
that company utilises all the elements that are available in the market this will assist them in
sustaining a better position in the market area.
PROJECT 2
TASK 2
Essence Drink wants to launch their business and for this they are consulting a firm who
are guiding them in operating their business in a proper manner. Company is working at small
scale and they are hiring eligible candidates who can help them in enhancing their brand image.
Therefore, Essence Drink is consulting Risual who provides facilities that are related to
recruitment and selection process. Description that is associated with the company is given
below:
Overview/background of company and the problem
Risual provide services of the organisation by appointing skilled and talented individual
who are appropriate for the job. Therefore, it is a consultancy firm in United Kingdom and it is
currently running around 45 enterprise throughout the nation (Wolin, 2016). They are working
for giving services in various fields like engineering, technology, construction and many more.
Company is providing services on both contractual as well as permanent basis according to the
situations or choices. Apart form this, Risual provides advices to big firms which are related to
legal aspects, in context to business and many more. Therefore, people who are working under
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this Risual has collaborated with experts and experienced person who are good in giving giving
solutions. Turnover of this organisation is around £28.6 million in the year 2017.
Problem generated:
Risual is facing problem while operating their business operations as they are not having
sufficient amount of data about unemployment (Voorberg, Bekkers and Tummers, 2015). Apart
form this, the organisation is not having ample amount of finance or resource which they can
apply for getting appropriate results, as a result the firm will not be able to deliver their
commodity right on time.
For comping up with all the problems it is required that latest tools and technologies are
applied by the firm so that market research can be conducted effectively. In return it will help the
organisation in solving their problems that are related to finance. Therefore, their main aim must
be to look out for people who can put their wealth and for this, they are collaborating with
stakeholders and investors who can invest their money on a company so that they can get
maximum benefits. As compared to old time now organisation are using digital technology who
are assisting them in providing services and facilities in a proper manner. Thus, it is helping the
firm in sustaining a better position at market area.
Scoping of ideas for new products
Consulting business seems like a simple business to start, it's not just about to make a
connection with some companies and a business can fly. Any business needs to grow up with
innovation and techniques, after all these are the lifeline to run a firm effectively. An
organizations needs to be take a step forward to increase its business with through a pool of the
ideas, the gathered ideas will then generate a new concept that are aid to offer new growth,
Risualis consultancy firm, which needs to innovate to bring it business on perch (Mowery and et.
al., 2015). There are so many techniques which can raise a business, like internet,video
interviewing, and so on. The ideas can be gathered from the employees of the firm according to
their capabilities, experience and knowledge and their skills.
Use of Talent Analytics
A few years ago, consultancy firms was limited to conducting direct interviews with
which they are connected. But now, in present era, they are spreading there arms towards
adopting new technologies and give the opportunities to the aspirants. Fostering new ideas and
then prepare new technologies, that not only demand the applications from the people rather
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they also search for the most desirable offer for the clients. Risual believes to make relationship
not the revenues, although that is required but in business contacts are also important to survive
in market (Kogan and et. al., 2017). They search for the in house talent that can introduce the
new success to the company, like new generation is very innovative and techno savvy, they have
new concepts to adopt the technologies, such as they can make a portfolio and can be connect to
some professional websites and can make a bridge between the organizations and applicants to
catch the opportunities which are available in the market. The youngsters have the ability of
brainstorming to get a business on hike.
Identification of solution of the problem
Commercial Funnel: Commercial funnel can be refer as a strategy to commercialize a
product and service, this a procedure that implements to to increase the sales. The first thing
needed to be capture attention, because the people may not aware about this for the first time,
after grasping their intention, interest needed to be deepen as much as the curiosity develops the
the desire will grow to by knowing benefits in inspirational way, so that the action for the
purchase of the products and services can take place. This will enhance the sales and the
commercial funnel will get broaden in this place. For instance, the Risual is offering new service
for the people across the United Kingdom, then they require to catch the attention of people, they
can attain this through the use of social media website, they can put some advertisements which
are redirected to the company's page, there all the benefits are given regarding the new service,
that will assist to acquire the tendency to the purchase that services, that is beneficial to get the
recruitment. Although, social media is broader platform but there are some other tools which are
known as content writing, and e – mail.
Matching goals to resources and capabilities: Every organization has some
predetermine goals and objectives, for that it requires for resources like human resources that can
carry out all the activities to accomplish the target. There are so many activities which needs to
be supported like data gathering, sorting, etc. In Risual new and innovative technologies the
work load, because they are doing the old job, but with a new concepts (Juma, 2015). There
employees, clients and the end user does not required to move any geographical area, thanks! To
the growing technologies, that they adopted. There numerous professional website such
LinkedIn, Flickr, and Yammer, that can help to gather the data, of the aspirants that are seeking
for recruitment of there interest, so the firm can provide them a chance to explore, within there
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network. The firm access these website and gather the data and there human resources can
contact to the firm and after that they can go for the procedure if it the capabilities matches their
requirements.
Assessment of risk: Risk assessment refers to the identification of risks in the current
competitive marketplace, as there are so many consultancy firms are available in the market, so it
becomes necessary to analyse the risk for the future on the basis of current situations (Guttentag,
2015). Risual is a constancy firm that need to study the competency, to know the possible
outcomes, through analysing its resources and rivals, it should study about the rivals advantages
and disadvantages and their business, to get the information about the services what they are
proving to the society and clients. There are numerous tricks and techniques that are aid to serve
the best to the client and that raise their business as well. To recognize the the risk, they need to
focus on some certain key aspects, such as -
 What are the perils and risks factors that have the potential to harm business as compare
to others?
 What are the jeopardies are associated with that damage? What the appropriate strategies to control the risks that can eliminate the endangerment?
Value analysis: Value analysis determines the quality of products and services which are
providing by them, because that is a major of factor of satisfaction of the customers. This will
assist them to achieve the goals in effective manner. In Talent Plus, they renders the effective
quality of services that make user glad, first it examines the requirements of what kind of
services user seeking for, according to that they generates the products with maximum quality,
that can be a reason for the profitability. This quality grabs the attention of others that make them
use the services, and make them loyal user of their business, because of the techniques they are
adopting.
Determining techniques of testing effectiveness of new product
For having an effective growth it is important for a company to recognise the field that is
required to be filled so that proper recruitment process can be applied. Thus, it is essential that
organisation know about the advantages of services that is necessary to be fulfilled in future
proceedings (DiMasi, Grabowski and Hansen, 2016). Therefore, it is important to analyses all
the situations that can be used for implementing in their business operations. Henceforth, testing
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of product and feedbacks and reviews can be very helpful in determining the nature of the
product in the market area.
Furthermore some of the steps that will assist the organisation in making appropriate
items in given time period are given below:
Waterfall methodology: It can be analysis that testing of the product and items can be
determine after the completion of manufacturing process (Díaz-García, González-Moreno and
Sáez-Martínez, 2015).
Agile methodology: In this, testing of the products is determine quickly which may leads
in functioning entire process.
The way company can protect intellectual property rights of a new drink
Essence drink is going to launch a new drink at market area and for this, it is necessary
that they have intellectual property. Therefore, by implementing creative and innovative ideas
company can gain some advantages through which they can give tough fight to rival
organisation. Other than this, it is required that an individual who is running the business have
suitable knowledge about the rights and laws that are formulated by the Government so that no
single person is entertained (Barrett and et. al., 2015). Basically, it provides benefits to owner of
the organisation in securing their their innovative ideas form others so that they doesn't copy
them. Therefore, some of the intellectual rights are given below in order to understand it in a
better manner:
Copyright: This is a document that provides security to an idea for a certain period of
time. Therefore, it help an individual in securing their innovative ideas or thoughts form other so
that nobody can copy that in their business operations or if any organisation do the same than
they can face penalty for their doing.
Trademarks: It is used by any company in the form of symbols or signs so that they can
make their brand unique from others. Through this, customers will be able to recognise their
company from other organisation who are dealing in the same field. Therefore, it give privilege
in sustaining their brand image for a longer period of time (Bernstein, 2015).
Patent: It includes sort of rights that are formulated by the government of a nation so that
owners of a company can secure their invention or innovation for a certain period of time i.e. of
20 years but not more than that. It is included under intellectual property.
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CONCLUSION
From the above report it can be concluded that, to run an organisation in an effective
manner it is important that they make proper strategies and plan of action. Other than this, small
firms provides job opportunities to individuals and because of which an increase in revenues can
be seen. Along with this, by implementing innovating ideas company can give variety of choices
to its customers and it will enable them in sustaining a better position at market area. Thus, it is
important for manager of the organisation to formulate strategies which can give them better
outcomes.
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REFERENCES
Books and Journals
Barrett, M. and et. al., 2015. Service innovation in the digital age: key contributions and future
directions. MIS quarterly. 39(1). pp.135-154.
Bernstein, S., 2015. Does going public affect innovation?. The Journal of Finance. 70(4).
pp.1365-1403.
Díaz-García, C., González-Moreno, Á. and Sáez-Martínez, F. J., 2015. Eco-innovation: insights
from a literature review. Innovation. 17(1). pp.6-23.
DiMasi, J. A., Grabowski, H. G. and Hansen, R. W., 2016. Innovation in the pharmaceutical
industry: new estimates of R&D costs. Journal of health economics. 47. pp.20-33.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Juma, C., 2015. The new harvest: agricultural innovation in Africa. Oxford University Press.
Kogan, L. and et. al., 2017. Technological innovation, resource allocation, and growth. The
Quarterly Journal of Economics. 132(2). pp.665-712.
Mowery, D. C. and et. al., 2015. Ivory tower and industrial innovation: University-industry
technology transfer before and after the Bayh-Dole Act. Stanford University Press.
Voorberg, W. H., Bekkers, V. J. and Tummers, L. G., 2015. A systematic review of co-creation
and co-production: Embarking on the social innovation journey. Public Management
Review. 17(9). pp.1333-1357.
Wolin, S. S., 2016. Politics and vision: Continuity and innovation in Western political thought.
Princeton University Press.
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal
of Management. 40(5). pp.1297-1333.
Bain, D. and Kleinknecht, A. eds., 2016. New concepts in innovation output measurement.
Springer.
Bloom, N., Draca, M. and Van Reenen, J., 2016. Trade induced technical change? The impact of
Chinese imports on innovation, IT and productivity. The Review of Economic Studies.
83(1). pp.87-117.
Chesbrough, H., Vanhaverbeke, W. and West, J. eds., 2014. New frontiers in open innovation.
Oup Oxford.
Christensen, C. M., Raynor, M. E. and McDonald, R., 2015. What is disruptive innovation.
Harvard Business Review. 93(12). pp.44-53.
Gawer, A. and Cusumano, M. A., 2014. Industry platforms and ecosystem innovation. Journal of
Product Innovation Management. 31(3). pp.417-433.
Lee, J., Kao, H. A. and Yang, S., 2014. Service innovation and smart analytics for industry 4.0
and big data environment. Procedia Cirp. 16. pp.3-8.
Norman, D. A. and Verganti, R., 2014. Incremental and radical innovation: Design research vs.
technology and meaning change. Design issues. 30(1). pp.78-96.
Union, I., 2014. Communication from the Commission to the European Parliament, the Council,
the European Economic and Social Committee and the Committee of the Regions.
Brussels.
West, J. and Bogers, M., 2014. Leveraging external sources of innovation: a review of research
on open innovation. Journal of Product Innovation Management. 31(4). pp.814-831.
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Online
What is innovation?. 2018. [Online]. Available through:
<https://www.merriam-webster.com/dictionary/innovation >.
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