Important Aspects of Innovation and Entrepreneurship

Running Head: IMPORTANT ASPECTS OF INNOVATION AND ENTREPRENEURSHIP
Important Aspects of Innovation and Entrepreneurship
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1IMPORTANT ASPECTS OF INNOVATION AND ENTREPRENEURSHIP
Innovation plays an extremely important role within an organization to compete in the growing
business industry. Innovation increases the product attractiveness and multiplies the production
rate also. Faster soft wares, new advanced technologies and progressive manufacturing systems
are among the best kinds of innovation bringing huge changes within an organization. There are
five levels regarding bringing innovation and change in a particular organization. The first is the
‘idea’ to bring the change, the second is the process, the third is technological change. then
comes new products and services and last is their implementation (Baregheh, Rowley and
Sambrook 2009). With the growth of an organization, the cultural and strategical change and
innovation is also necessary. There are mainly four types of innovation in business which
includes Architectural Innovation, Radical Innovation, Incremental Innovation and Disruptive
Innovation. Entrepreneurship on the other hand is all about making use of the opportunities,
being creative and innovative (Czarnitzki and Delanote 2012). According to Qian and Haynes
(2014) the third millennium has been referred to by many scholars as ‘non-elastic’ and ‘non-
returnable’ age. The terms are used to denote the incompetence of the past technologies for the
current issues. Today, the world economy is getting stronger with the emergence of new
entrepreneurs with innovative ideas. Entrepreneurs such as Steve Jobes, Bill Gates and many
other successful persons have incorporated innovative ideas to reach the highest position thereby
proving that entrepreneurship and innovation are deeply interrelated (Qian and Haynes 2014).
Innovation contributes to the development of economy. Innovation has been adopted by churning
the new from the old which is also called the ‘creative destruction’. The introduction of new
methods of production and products, the new business relationships, discovery of new raw
materials are the innovative steps that add value to the economy to a great extent. Innovation