Innovation and Entrepreneurship in Knowledge Industries

The assignment provided is a collection of research papers and articles related to innovation and entrepreneurship in knowledge industries. It covers topics such as mode 3 knowledge production, quadruple helix innovation systems, entrepreneurship and growth, social entrepreneurship, and more. The study aims to provide insights into the role of entrepreneurs in firm-level innovation, process innovation, value creation by non-profit SMEs, and the impact of geographic proximity on entrepreneurship and innovation.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Influence of innovation on global environment.........................................................................1
Advantages of innovative entrepreneurs on society and economy of a nation...........................3
COUNTRY CASE...........................................................................................................................4
INDUSTRY CASE..........................................................................................................................5
DISCUSSION AND CONCLUSION.............................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is term which is used commonly in the contemporary market. It is the term
which refers to introducing something new to the market (Tidd and Bessant, 2015). It does not
need to disrupt the market circumstances but to launch a product which is better than the existing
products or offerings. The process of innovation undertakes experimentation which assists in
creating something fulfils the demand of people in an improved manner. The efforts which are
directed towards innovation aims to resolve the existing problems persisting in the market (Mitra
and Borza, 2011). Whereas entrepreneurship on the other hand refers to the setting up of a
business for the purpose of making financial gains. It is refers to a mind set of a people who are
looking to launch a product and service into the market. It is not as simpler as running a business
in the market. It includes activities which are much broader than the concept of creating a new
business ventures. It emphasizes on undertaking of unprecedented measures which results in
creation of product which is non-existent in the market.
Apple Inc. is a company which has garnered its name through introduction of the
disruptive innovation around the globe. The challenge which is encountered by the company in
innovation is that the unprecedented offering in the mobile technology sector are only availed by
the people who possess favourable economic circumstance. The company have incurring various
tremendous efforts to introduce products for the masses (Belz, 2013). The study will be carried
out in consideration of the United Kingdom environment and will focus primarily on the handset
industry. The reason to take up the challenge is that Apple has been struggling to offer
innovative products and services at lower prices. The handset industry in the united kingdom is
experiencing technological breakthrough which are further offered to people.
LITERATURE REVIEW
Influence of innovation on global environment
According to Dacin and Matear, 2010) Organisation have to operate in taking into
consideration about changes in business environment. Innovation refers to the introduction of
new thoughts and ideas which help in initiation of new products and services. Innovation can be
categorised into different types depending on the point of emerging. As this is the world of
globalisation innovation plays an important role in pioneering changes in business operations and
methods adopted by company. Invention only welcomes new things which have not been
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introduced till that time. Innovation process can be carried out in any of the fields which can be
related to any business organisation, concept, product, services etc. In the point of view of Baron
and Tang (2011) challenges are part and parcel of any business organisation. They have to
consider all these issues in order to gain competitive advantage in the market place. Innovation
impacts global market in following ways:
Marketing aspect of the organisation- Innovation have diverse dimensions and affect
marketing area of the organisation. It is related to market research, product quality, promotion,
pricing strategy etc. Marketing aspect of any institution have crucial impact on the market place.
Increase in Competition- Due to globalisation, world has come closer which results in
increasing of competition among the firms and various industries. There fore, innovation has
major influence on competitive advantage of every organisation. They have to carry out their
operations in such in order to survive in the cut throat competitive world.
Demand- This factor includes demand of customer regarding products in the market.
Due to innovation variety of products and goods are available for the consumers. Hence, they
have huge alternatives available in respect of demand. There are number of industries offering
similar types of goods ( Huarng and Hui-Kuang , 2011). Consumers always prefer those products
which are different and able to fulfil their needs in affordable costs.
Updated Technology- Innovation require modern technology to meet the external
changes that may occur due to globalisation. Hence, modifications needs to perform in order to
face the challenges that occurs due to technological factors. Technology is included in the
external factor that influences the global market. Innovation helps in introduction of new
terminologies that have several advantages and dis advantages associated to it.
Changes in rules and regulations- Due to impact of globalisation with innovation
various policies and rules are to be framed in order to gain success along with their competitors.
Rules and regulations needs to be modified with time. Rules are framed in various fields like in
operating business operation or in manufacturing concept. Hence, Policies of organisation needs
to be framed in such a manner so that it can modify with the changes.
Currency Rates- Due to globalisation currency gets influenced of many areas. As they
have to consider inflation and deflation of that influenced country. Currency rates plays an
important role in influencing global market.
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High Quality of products- Innovation helps in producing high quality of goods and
services. It aims in infusing of innovative ideas and process which leads in improvement of
product quality. In today's world consumers are more focused upon quality goods as they are
health conscious (Letaifa and Rabeau,2013). Every company manufactures high quality goods so
that they can be able to satisfy their prospective buyers needs and gain their loyalty for life time.
Pricing Aspect of the organisation- Due to globalisation, pricing strategy of the
company have to be modified in accordance to the globalisation policies and rules or regulations.
Pricing is an important aspect to be considered by every business organisation as it specify price
to be paid in exchange of the products.
Advantages of innovative entrepreneurs on society and economy of a nation
An entrepreneurs have innovative and creative ideas which are useful to run a successful
business. They have an ability to bear risk and uncertainties regarding implementing unique and
creative thoughts to introduce exact new concept in market. They have focussed on both
organisational as well as personnel growth of their careers to gain achievements. Along with this,
entrepreneurialism build wealth for society as well as nation by providing job opportunities to
people by improving their living standard in an effective manner. It generates wealth at national
level for the government as well in terms of taxation. Small business entrepreneurs are emphasis
on providing qualitative and value added products for their target audiences; it results people get
valuable items on reasonable rates which enhance their living standard.
Advantages for society and economy
Economic growth: It creates several new opportunities for the society as it plays an
important role to improve government funds due to enhance productivity and profitability of an
organisation. By applying some innovative and creative tools or techniques to increase working
efficiency of employees and morale so that they generate better output on daily basis. It
facilitates to enhance profits and benefits which results in increase of taxation and increase in
government funds. Hence, an entrepreneur contribute positively in make strong economy of a
country (Wright and Stigliani, 2013).
Job creation: Entrepreneurialism also requires the skills and labour of many hands which
necessitates job creation. Due to booming business grows, it put a huge impact on geographical
area or local level as well. Whenever innovations or new concepts are introduces then it become
mandatory to hire new employees for fulfil aspects of procedures and activities which should be
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conducted to implement changes in an organisations. Overall, an entrepreneur facilitates new job
opportunities with its innovative thoughts. It reduces issue of unemployment of the nation and
results in developed country.
Philanthropy: It is a fact that whenever owners of a business achievements of peak
success of corporate world then they will try to donate their valuable funds to charities for
soci8al welfare of country which results in attaining social well being of country. Entrepreneurs
have that ability to achieve a huge profit at one stroke of implementing new ideas and thoughts.
Unfortunately, they facilitates the contribution to charitable funds for improvement of social well
being of nation.
Innovations: As it is well known that entrepreneurs are responsible for introducing new
and creative ideas or policies to make a successful business (Nambisan and Baron, 2013).
COUNTRY CASE
The country which is taken into consideration is United Kingdom. This country is known
to be one of the best nations to study and practice entrepreneurship and innovation (Courvisanos
and Mackenzie, 2013). In the year 2014, there were approximately 500,000 creation of business
which makes it one of the best entrepreneurial country in the Europe. Out of all, 14% of the
efforts are made in offering innovative products to the market. In context of the country,
technology has played a substantial role in the uplifting stature of the country. The shift which is
introduced by technology have resulted in creation of around 2 million jobs.
The technology have impacted almost every segment in the country and is not only
confined to the geographical boundaries of a nation. The innovation carries the power the disrupt
the changes in the global environment (Soriano and Huarng, 2013). Therefore it can be
ascertained from the above stated facts technology have played influential role in the disrupting
market in a national and global level. Apple Inc. has been extending its foot print in the market
of United Kingdom. The environment rendered by the government ensures that there is
maximum number of participation in entrepreneurship and innovation.
The government has established numerous schemes which provides relevant financial
assistance so to provide an opportunity to flourish. This support is further extended to
multinational corporations and are offered with numerous opportunities to expand their
entrepreneurial ventures within the country. Such practices by the government ensure that such
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practices are carried out for long and uplift the status of economy of a country. Technology
domain in the country have been receiving tremendous amount of funds to sustain their functions
for a longer period.
There is no denying the fact that innovation and entrepreneurship requires heavy
inclination towards the R&D (Malerba, 2010). It also ensures that there is an possibility of
success in the area. In the United Kingdom itself the company possess a whopping 49% share of
the market. This organisation have been receiving favourable support from the government of the
country. However there is a heavy reliance on the parts which are manufactured from china. The
relation with china are not ideal which led to create disturbances in the supply of products to the
consumers. The company have started manufacturing their own parts of the country so that ideal
political and economic circumstance can be utilised up to their full potential. The leveraging of
the innovation capabilities of the country in the United Kingdom. The reason for the same is that
company is loosing its credibility as a major inventor and are trying to gain the lost prospects.
The efforts are aimed to indulge more and more diverse people from the various parts of the
world so that better ideas are created (Fox, 2014). The major challenge which is encountered by
the organisation is price at which new innovative technology is introduced to the market. The
company have not been able to introduce its offering for the masses. The struggle of for
technological innovation in respect to organisation have been covered by the brand name of the
company in the market. The company is taking some well calculated efforts to reach to new
heights in the market of United Kingdom.
INDUSTRY CASE
The Prime Minister of the country describe the technology industry as the great British
Success story. The investment in this domain have received significant growth which amounts to
a 9.2 billion euros. The contribution of this industry in the economy of the United Kingdom
stands crucial. It carries an impact on the number of jobs in the digital sector of the country
(Carayannis and Campbell, 2012). The mobile phone industry of the United Kingdom is going
through a major transformation. The variety of organisation are putting their best foot forward to
ensure that company attains a superior position in the market. There are technological innovation
in terms screen resolution, aspect ratios, fragility and charging speed. Apple Inc. have been one
of the front runner in the smartphone industry in the United Kingdom. However there is no
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change in the sales of smartphone in the country as they stood flat. However there is a substantial
increase in the prices of smartphones which leads to a situation of boom in second hand mobile
market (Carayannis and Campbell, 2012). As referred to above the smartphone manufacturer are
not able to introduce creations and innovation at low prices due to which a common people are
not able to facilitate innovation. The major reason behind the same is that there are large amount
of R&D involved along with volatile nature of international markets (Harvey, Kiessling and
Moeller, 2010).
Continuously lead of apple smartphones in a market with just despite sales is 34%
declining of sales in sequence. Second largest brand in a technology headset industry is
Samsung, little behind apple having flat share of a market of headset industry. Double-digit of a
share of market is a largest third brand of Chinese giant Huawei, all price tiers having a diverse
portfolio, but till having space behind apple and Samsung present approach of virtue duopoly.
Market of US, Samsung and apple both controlled of 1/3 of smartphones of UK markets in a
volumes of sales and sales value 80%. Smartphones are collapse in 2014 September cause
decline of a revenue of industry by 17.5% in 2014-15. Role of technology in mobile headset as
sales of smartphones within a industry are able to expand , boost of revenue of industry approx
17.9% in a following year. Expected revenue has been decreases at a compound annual rate of
0.2% in in five years.
The global market dynamic undertakes the fluctuations in the economy due to volatile
nature of demand and supply (Drucker, 2014). The iPhones are one of the most anticipated
innovation which is desired by the prospects but the dynamism of the market carries a major
influence on the functioning of organisation. The pricing of the products have ensured that the
company is able to attain highest profits margins (Coase and Wang, 2011). On the other hand the
competitors are offering services which are lower priced. The saturation of the market have led
this organisation to venture its efforts out of the country and opt for a marketing approach as
production oriented practices are not yearning results for enterprises. The company have relied
their products and services on the software gimmicks which are not enough to sell products in
the market (Johnson, 2017). The benefits which are offered to the consumers needs to be
highlighted. The recently launched product for the company i.e. iPhone X has been priced at
premium rates which have received poor consumer responses due to lack of affordability. The
screen of the phones which are manufactured by the Samsung which leads to higher prices. To
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counter the circumstances it is essential for business to start manufacturing their own products so
that competitive prices can be charged. These are some of the measures through which Apple
Inc. can uplift their circumstance in the market and can offer innovative products at competitive
prices.
DISCUSSION AND CONCLUSION
It can be summarised from above report that entrepreneurship and innovation are
interrelated and combined approaches which need proper advancement in order to compete in the
global business environment. The reporting is focusing over the issues which is faced by Apple
while innovating their products and services in United Kingdom. The economic condition of
United Kingdom is not better where the company is facing issues of selling product in UK as the
new innovative products are more expensive. The competitive business industry of
telecommunication is growing rapidly which is producing more advanced technologies as
compared to Apple which is leading conflicts and issues for organisation. However there is no
change in the sales of smartphone in the country as they stood flat. The major cause behind the
issues is telecom enterprise which is manufacturing the same products in less prices. The
industry of smartphones is running in very high pace and enterprises are striving hard to keep up
with forces. The new research and development departments of Apple in United Kingdom may
lead the organisation to better level of innovation and assist in development in ideal way.
It has been identified that the future trends in the smartphone industry will have higher
innovation and entrepreneurship. The smartphone industry is running at a very fast pace and
organisations are striving hard to keep up with this force. The level of competitiveness provided
by the rival smartphone manufacturer is comparatively more advanced. The latest developments
in smartphone business will be facilities and features which will provide holographic projection.
The advancement in terms of camera is another innovation which is experienced by
organisations. The introduction of Advanced Imaging have proved the rate at which this industry
is growing. The Chinese manufacture have been projecting a favourable trend in the market
which carries a unfavourable impact on the functioning of Apple. The company can venture in to
Augmented reality tools and devices as they are receiving a positive response from the
consumers. The services beyond 4G are getting a warm welcome from people as can help in
predicting future trends of this industry.
The major recommendations to business managers working for Apple Inc. are as follows:
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 The company possess a ideal brand name in the market but lately is not able to keep up
with the sales numbers. The recommendations under such circumstance is to opt for
launching products at competitive prices so that more sales can be availed.
 The company should hold control over its supply chain so that products are offered are
manufactured by self. This feature will help business to deal with volatility of
international markets as inputs are manufactured from china.
 The market in smartphone industry changes at a regular interval therefore a this company
can launch products more frequently so that demands and expectation of consumers are
met.
 The rise in imitated products has inclined therefore a business needs to upgrade its game
in patent portfolio so that its inventions are preserved and exploited.
 Most importantly Apple should focus on producing products which are affordable by the
masses as at present people of the country is experiencing a comparatively lower
disposable income.
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REFERENCES
Books and Journal
Tidd, J. and Bessant, J., 2015. Innovation and entrepreneurship (No. 3). Wiley.
Mitra, C.S. and Borza, A., 2011. Innovation and entrepreneurship. Managerial Challenges of the
Contemporary Society. Proceedings. p.342.
Courvisanos, J. and Mackenzie, S., 2013. Innovation and Entrepreneurship. Encyclopedia of
Creativity, Invention, Innovation and Entrepreneurship. pp.933-943.
Soriano, D.R. and Huarng, K.H., 2013. Innovation and entrepreneurship in knowledge
industries. Journal of Business Research. 66(10).pp.1964-1969.
Malerba, F. ed., 2010. Knowledge intensive entrepreneurship and innovation systems: Evidence
from Europe. Routledge.
Fox, S., 2014. Third Wave Do-It-Yourself (DIY): Potential for prosumption, innovation, and
entrepreneurship by local populations in regions without industrial manufacturing
infrastructure. Technology in Society. 39. pp.18-30.
Carayannis, E.G. and Campbell, D.F., 2012. Mode 3 knowledge production in quadruple helix
innovation systems. In Mode 3 Knowledge Production in Quadruple Helix Innovation
Systems (pp. 1-63). Springer New York.
Drucker, P.F., 2014. The Executive in Action: Three Drucker Management Books on What to Do
and Why and How to Do It. Harper Collins.
Coase, R.H. and Wang, N., 2011. The industrial structure of production: A research agenda for
innovation in an entrepreneurial economy. Entrepreneurship Research Journal, 1(2).
Johnson, G., 2017. Exploring strategy: text and cases. Pearson.
Harvey, M., Kiessling, T. and Moeller, M., 2010. A view of entrepreneurship and innovation
from the economist “for all seasons” Joseph S. Schumpeter. Journal of Management
History. 16(4). pp.527-531.
Belz, F.M., 2013. Shaping the future: Sustainable innovation and entrepreneurship. Social
Business. 3(4). pp.311-324.
Dacin, P.A., Dacin, M.T. and Matear, M., 2010. Social entrepreneurship: Why we don't need a
new theory and how we move forward from here. The academy of management
perspectives. 24(3). pp.37-57.
Baron, R.A. and Tang, J., 2011. The role of entrepreneurs in firm-level innovation: Joint effects
of positive affect, creativity, and environmental dynamism. Journal of Business
Venturing. 26(1). pp.49-60.
Huarng, K.H. and Hui-Kuang Yu, T., 2011. Entrepreneurship, process innovation and value
creation by a non-profit SME. Management Decision. 49(2). pp.284-296.
Letaifa, S.B. and Rabeau, Y., 2013. Too close to collaborate? How geographic proximity could
impede entrepreneurship and innovation. Journal of Business Research. 66(10). pp.2071-
2078.
Wright, M. and Stigliani, I., 2013. Entrepreneurship and growth. International Small Business
Journal. 31(1). pp.3-22.
Nambisan, S. and Baron, R.A., 2013. Entrepreneurship in innovation ecosystems: entrepreneurs'
self‐regulatory processes and their implications for new venture
success. Entrepreneurship Theory and Practice. 37(5). pp.1071-1097.
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