Entrepreneurship and Innovation: Creativity, Innovation & Australia

This report provides an overview of entrepreneurship and innovation, highlighting the relationship between creativity and critical thinking, and discussing the three main types of innovation: incremental, disruptive, and breakthrough. It further assesses Australia's performance on the seven innovation pillars based on the Global Innovation Index, identifying strengths and weaknesses. The report emphasizes the importance of creativity and innovation for a country's economic success, noting that these skills are crucial for developing new strategies, overcoming competition, and achieving business growth. The document concludes by stating that creative and innovative thinking are vital for solving management problems and improving business processes, ultimately contributing to the overall success and economic growth of a company or country. Desklib provides access to this and many other solved assignments to support student learning.

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Entrepreneurship and Innovation
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Entrepreneurship and Innovation
Contents
Introduction......................................................................................................................................3
Creativity and its relationship with critical thinking.......................................................................3
Innovation and it’s three important types........................................................................................4
Australia’s performance on the seven innovation pillars................................................................5
Importance of creativity and innovation to any country..................................................................6
References........................................................................................................................................7

Entrepreneurship and Innovation
Introduction
Innovation is considered as the tool that can be utilized by the entrepreneurs or the means and the
medium through which the change is exploited and is considered as an opportunity for different
business or different services (Parida, Sjödin, Wincent and Kohtamäki, 2014). The below-
presented report has been made focused on the entrepreneurship and innovation.
Creativity and its relationship with critical thinking
Creativity can be defined as different new strategies, ideas or plan that an individual come up
with, while solving a problem or stuck in a difficult situation. Creativity explains the way an
individual think in a different way than normal (Sener and Hacıoglu, 2017). Thinking creatively
allow one to come up with some original ideas that might get missed by others. Most of the times
one confuses innovation with creativity but these are completely different terms and innovation
is one of the process that an individual go through while thinking creatively. Creative thinking
involves so many processes for instance, an employee should be open to all the ideas and as well
as able to go through all the new plans, one should broaden their mind while thinking and try to
invent as many creative ideas as possible, members should try to imagine each and every
situation different from the current standards and last but not the least, curiosity leads to
developing and considering new plans or ideas. on the other hand critical thinking refers to
analyzing the situation with logic and thoroughly examining each and every facts before
reaching to any conclusion.one should be able to think objectively while making any decision.
Critical thinking emphasizes on keeping all the possible scenarios in mind while making decision
that are related to employment, job processes or business processes. Instead, to think creatively
these decisions involves thinking critically using logic and facts (McPeck, 2016). The relation
between creativity and critically thinking is quite complicated but in order to think critically one
needs to come up with creative ideas. Most of the times these both terms do not go “hand in
hand” because during creative thinking one has to expand the option they have while thinking
critically one has to narrow down their options, thinking analytically but when , creative
thinking, as well as critical thinking, are merged these become of greater importance and neither
one is dominant nor recessive and while making decision when can focus on the matter logically
or analytically but with the creative thinking combined, it can lead to a valuable decision. Some

Entrepreneurship and Innovation
of the problems or issues are so hard to solve just by giving a normal thought so to get a
permanent and reliable solution an employee is required to think about the situation creatively
and critically both because it would require both reasoning and unique ways of solving it. If
critical thinking and creativity are studied differently then it shows that while thinking critically
analyticity is required and also an objective approach towards the situation, considering all the
important facts and details but while making creative decisions only a special way of thinking
and increasing the imagination is required but most of the times while solving a problem one has
to approach both creative as well as critical thinking in order to resolve the issue in a most
efficient way.
Innovation and it’s three important types
To expand business and overcome competition and gain the competitive advantage in the market,
companies need to come up with different innovative ideas in order to manufacture new products
or implementing new methods or ideas onto an industry or organization. It’s quite normal to
mistake invention for innovation but these both terms are completely different. (Shiraev and
Levy, 2016) Innovation means doing something in a completely different manner than usual that
occurs in a business organization whereas invention means producing something for the very
first time which has never been done before and that leads to the invention of a new product. The
three main types of innovation are discussed below:
1) Incremental innovation-incremental innovation involves improving the existing product
or upgrading the product or the old business strategies, methods processes and the
services of any organization or industry in order to increase efficiency, competitive
advantage, development of the services and last but not the least, to increase the
productivity and the sales. It involves both, removing or adding certain features in the
existing product to make it more efficient. With the increasing demands of the latest
technology products by the customers, the company has to improve its existing products.
2) Disruptive innovation-This form of innovation focus on disrupting the existing market
and affecting the way how they function, altering and affecting the different business
processes of a company making the market to move up thus improving the products and
the services provided by the company for the welfare of the customers and which better
suits the needs of the buyers (Chaffee, 2014). If a company is being profited from

Entrepreneurship and Innovation
disruptive innovation then other might suffer loss. In the initial phase of disruptive
innovation the company might suffer from high expenses because of using new
technology and it might be little harder to use that technology at first but after some time
it will get easier to use and more and more customers will get attracted towards that latest
technology, therefore, more and more products will be sold benefitting the business and
helping the business to expand as the quality of the product improves by the use of latest
technology.
3) Breakthrough innovation-Launching a completely new product in the market which is a
game changer and involving new technology which has not come in the market yet hence
creating a revolutionary change in the market (Cropley, 2015). Although breakthrough
innovation is quite rare because it is hardly possible to invent an original product because
few features that are added to the product might be a result of the existing technology.
This form of innovation helps a company in getting the competitive advantage because
launching a new product according to the needs of customers would attract more and
more customers hence increasing the sales.
Australia’s performance on the seven innovation pillars
On the basis of the research executed by Global Innovation Index, it has been analyzed and noted
that Australia is ranked as the 17th most innovative economy all over the globe. But there are
some poor performances that are hidden in some of the significant areas. As per the
announcements made by Prime Minister Malcolm Turnbull that the government will be spending
will $1.1 billion for promoting research, development, and innovation that is based on business
(Liddy 2015). The 17th ranking position of Australia is attained by adding up of the number of
factors It has been observed that on some points Australia is performing extremely well as
compared to the other economies but on others aspects, it performs poorly (Kuazaqui, 2015). For
example, despite the fact that Australia is positioned number one on the planet for how long
children normally spend at school, it's a modest 77th in view of what number of individuals is
moving on from science and building degrees. On that measure, the information puts Australia
beneath Azerbaijan, Mongolia, and Guatemala. The accompanying diagram demonstrates
Australia's worldwide positioning on every metric that makes up its advancement positioning

Entrepreneurship and Innovation
and which ones the report recognizes as qualities and shortcomings for Australia. Each number
speaks to Australia's positioning out of the 141 nations incorporated into the file.
Importance of creativity and innovation to any country
To achieve success, innovation is creativity plays a major role. These both skills are critically
required to help develop any country’s economy (Forgeard and Kaufman, 2016). To innovate
something one needs to think creatively because creativity refers to unique thoughts and ideas
while innovation refers to implementing those thoughts in order to invent or produce something
extraordinary. While being creative one needs to think out of the box and expand their
imagination and thoughts, and along with proper innovative ideas and strategies, it becomes sure
to achieve growth in business and increase productivity. To think creatively there are so many
ways to get inspired for example, from fellow employees, business partners, another
organization, competitive groups, customers etcetera but the thing is one has to welcome all the
suggestions and ideas coming from others. Thinking creatively as well as innovative ideas help
to solve the problem easily (Dawson and Andriopoulos, 2014). It also helps in developing new
strategies for the business processes and overcoming competition, by allowing the company to
think innovatively in order to produce an effective product and services hence allowing the
organization to achieve the required goals and targets, which also leads to the growing business,
higher productivity and a large number of sold products. Most of the management problems
require a creative and innovative solution that is why creative thinking allows the employees to
think differently and uniquely to solve all the issues (Anderson, Potočnik and Zhou, 2014). To
keep a business well and alive all the workers should be able to think creatively and possess new
and innovative ideas which might add to the success of the company and also leads to improving
the business processes. To make a change happen these two are the most important and vital
factor in the success of any company as well as country and also behind the increasing economy
of a country.

Entrepreneurship and Innovation
References
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.
Chaffee, J., 2014 Thinking critically. Boston: Cengage Learning.
Cropley, D.H., 2015 Promoting creativity and innovation in engineering education. Psychology
of Aesthetics, Creativity, and the Arts, 9(2), p.161.
Dawson, P. and Andriopoulos, C., 2014 Managing change, creativity and innovation. Sage.
Forgeard, M.J. and Kaufman, J.C., 2016 Who cares about imagination, creativity, and
innovation, and why? A review. Psychology of Aesthetics, Creativity, and the Arts, 10(3), p.250.
Guayaquil, E., 2015 A Discussion on Entrepreneurship, Creativity, and Innovation Applied to
International Marketing. Economics, 3(1-2), pp.54-70.
Liddy, M, (2015) [Online]. How Australia ranks on innovation, in one chart, Available at:
http://www.abc.net.au/news/2015-12-07/how-australia-ranks-on-innovation/7007740. [Assessed
on 31st May 2018].
McPeck, J.E., 2016 Critical thinking and education. New York: Routledge.
Parida, V., Sjödin, D.R., Wincent, J. and Kohtamäki, M., 2014 A survey study of the
transitioning towards high-value industrial product-services. Procedia CIRP, 16, pp.176-180.
Sener, S. and Hacıoglu, V., 2017 Innovative entrepreneurship under uncertainty. Journal of
Business Economics and Finance, 6(2), pp.168-176.
Shiraev, E.B. and Levy, D.A., 2016 Cross-cultural psychology: Critical thinking and
contemporary applications. New York: Routledge.