Innovation and Technology Management: Economic Growth Report

This report, prepared for an Innovation and Technology Management module, investigates the critical relationship between innovation, entrepreneurship, and economic growth, particularly within startup environments. It explores the Schumpeterian approach to analyze the impact of innovation on economic development, examining dimensions such as product, process, paradigm, and position. The report delves into the role of entrepreneurs in implementing ideas and driving economic activity, highlighting drivers of innovation, including ICT, knowledge sharing, and human resources. Through a literature review, the report synthesizes research findings and offers recommendations for fostering innovation and entrepreneurial success, providing valuable insights for students and professionals interested in the field. The report also looks at the drivers of innovation and how they contribute to the growth of small startup entrepreneurs.

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The role of innovation and
entrepreneurship in economic
growth

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Executive summary
Innovation and entrepreneurship both are major factors in the economic development of a
country and the growth of small startup entrepreneurs. The key aspects of innovation and
entrepreneurship are mainly the most characteristic influence to financial development.
Innovation is an essential part that has the potential to improve the performance of startup
companies and help management to gather larger profits. The key goal of this research is to
demonstrate knowledge in the area of innovation and entrepreneurship and examine how both
these factors help in the economic growth and startup entrepreneur. In this investigation, the
Schumpeterian approach is designed in order to analysis and empirical hypothesis related to
innovation and economic growth. In the case of economic, innovation describes the
applications and development of ideas and communication technology which enhance goods
and services and provide better products to the consumers. This report conducted a literature
search in order to analyze and examine the opinions of other researchers along with the
findings of previous investigations. From literature, it is observed that both innovation and
entrepreneur play a crucial character in economic growth. There are mainly four drivers of
innovation includes in the growth of small startup entrepreneur including, ICT, sharing, the
building of knowledge and human resources. In which ICT is a very important driver that has
the ability to reduce communication gaps between consumers and entrepreneurs and help
management for performing real-time communication in the workplace.

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Table of Contents
1. Introduction........................................................................................................................................3
2. Literature review and Critical Analysis..............................................................................................3
2.1 Dimensions of Innovation............................................................................................................3
2.2 Role of Innovation and Entrepreneurship in Economic Growth...................................................5
2.3 Drivers of Innovation...................................................................................................................6
3. Recommendation and conclusion.......................................................................................................8
4. References........................................................................................................................................10

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1. Introduction
The term innovation is defined as a process which included numbers of activities and
approaches to uncover new ideas to do things and help consumers for implementing their
ideas. Such kind of process shows a major part in the growth and improvement of economic
growth where it translates an invention into services which produce values for which the users
will pay. It is observed that entrepreneurship is one of the major factors that help consumers
to implement their ideas and also improve overall economic growth (Schmitz, 2017). The key
goal of this research is to explore the importance of novelty and entrepreneurship in economic
growth and analyze the various dimensions of innovations. It is identified that both revolution
and entrepreneurship are possibly Schumpeter’s most characteristic influence to finances and
growth of small start-up entrepreneurs. Mainly, an entrepreneur combines land, capital and
consumers to manufacture goods and deliver services by delivering and forming the
companies. This research report will conduct a literature review in order to analyze and assess
the numerous sizes of innovation and critically review the viewpoints of other experts in the
area of innovation.
2. Literature review and Critical Analysis
It is observed that the role of innovation in economic growth is a common topic for this
investigation and there are numerous papers were published in the last few years. The focus of
this section is to analyze and evaluate the findings of previous investigations and examine the
viewpoints of other researchers on innovation and entrepreneurship.
2.1 Dimensions of Innovation
According to Schmitz, et al., (2017) innovation and entrepreneurship both are considered as
the major element that helps in the enhancement of modern economic and small start-up

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entrepreneurs. This paper is based on innovation and its significance in economic growth. It is
identified that the term innovation is the development and implementation of new ideas in the
workplace. While entrepreneurs are those business developers who seek to produce values by
creating economic activity. After reviewing the paper it is observed that innovation is an
effective process that provides the foundation for new products, services and business to the
consumers.
It is true that with the help of innovation the economic growth can be monitored in an
effective manner and for supporting this argument Malecki, (2018) conducted a literature
survey and highlighted that innovation and entrepreneurship play a major contribution to the
growth of economic. It is identified innovation is a particular tool of entrepreneurs by which
they exploit changes in terms of business or services. The previous studies provided
information about the innovation and entrepreneurship but did not examine their various
dimensions which produce a gap in the research.
The successful innovation team requires a platform where they can identify the best ways to
improve the performance of startup ideas and increase over the growth of the economy.
Mainly, entrepreneurs provide such kind of platform and help companies for implementing
their startup ideas in an effective manner (Malecki, et al., 2018). Recent literature conducted
by Cavusgil, and Knight, (2015) examined that there are major four dimensions of innovation
that play an important role in the growth of startup entrepreneurs. These dimensions include
product, process, paradigm and position.
The product type of dimension changes the things that a business company offers to the
consumers and stakeholders. A recent study observed that these four dimensions have the
potential to enhance economic growth along with the small startup entrepreneurs. Procedure

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development is moreover very straightforward. It means changes in the connotation's events.
The last P is implication for worldview growth.
2.2 Role of Innovation and Entrepreneurship in Economic Growth
A recent study identified that small startup companies require reliable and efficient
entrepreneurs which can help for improving the performance of their businesses. According to
Pugliese, Bortoluzzi, and Zupic, (2016) young entrepreneurs are able to identify the risk
factors linked with small startups and innovation help management for changing the way of
communication and reduce errors. In this journal article, the authors provided completed
information related to the drawbacks occurred in the previous studies.
According to Jessop, (2019) the major significant benefit of innovation is its promise to
monetary growth. It is identified that Advancement and profitability development bring
tremendous compensations for clienteles and organizations. They have additional cash in their
pockets, thus can purchase more merchandise and ventures. Simultaneously, organizations
become increasingly creative, which authorizes them to donate and enlist more legislatures
(Morris, Neumeyer, and Kuratko, 2015). There are various kinds of applications of invention
and entrepreneurship in the development of the economy.
These key applications include, provide service chances, commerce and local financial
addition, new skills promote competence, addressing ecological tests, and so on. Recent
literature observed that innovation is now able to identify the risk elements that impact on
economic growth and provide a way where management can enhance the performance of
developed systems (Stam, 2015). From a monetary perspective, market analysts have utilized
various terms when they talk about advancement. Generally, advancement has been
incorporated into the capital amassing idea. At the point when old-style business analysts
talked about market conduct and mechanical advances, they included development. Mainly,

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when the business enterprise factor is considered the monetary operator's conduct must be
considered.
2.3 Drivers of Innovation
It is estimated that more than 60% of startup companies are using the ideas of entrepreneurs
along with innovation which supports management to effectively start businesses in the
market. Acs, Stam, Audretsch, and O’Connor, (2017) observed that there are major four
drivers of innovation in the area of startup companies, for example, ICT, sharing, the building
of knowledge and human resources. Moreover, it is identified that there are five key drivers
for entrepreneurship which involves culture, abilities, culture, incentives and opportunity
(Gërguri, et al., 2017). Therefore, it is stated that information communication technology is
one of the effective drivers of innovation which can help startup companies to improve the
effectiveness of the developed system and monitor the entire process appropriately.
In the context of small startup companies’ entrepreneurship is the reliable innovation driver
but it is very complex for companies to handle the risk and problems associated with the IT
systems. Capello and Lenzi, (2016) conducted a literature search and observed that security is
a major issue linked with the innovation which can directly impact on the personal data of
companies and startup companies do not focus on the privacy-related risks while using ICT
related services in the businesses. It is believed that the term innovation is defined as the
centre of changes in the economy which causes creative destruction in the area of socialism,
democracy, capitalism and so on. According to Schumpeter, the term innovation is referred to
as the process of industrial mutation that revolutionizes the economic structure by creating
new ideas and strategies.
This isn't an occupation yet a movement; furthermore, it must be viewed as the various
conditions and parts of an individual and the job of vulnerability and deterrents characteristic

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in the business creation process. Guerrero, et al., (2016) observed that Inventive economies
are increasingly gainful, stronger, and progressively multipurpose to change and healthier
prepared to help advanced prospects for ordinary securities. In this manner, it is a significant
driver of financial development and improvement. It is argued that the term innovation is the
effective process of entrepreneurs which involve information and communication
technologies as a driver that effectively enhance economic growth. It is stated that an
entrepreneur makes an effective contribution in the startup companies that provide a way
which leads management in an appropriate direction (Schmitz, et al., 2017).
In another setting, advancement is eluded as the inventive annihilation, which builds up the
economy, what another place the business person attempts to play out the capacities identified
with change maker. Business visionary infers in the expressions of Schumpeter's is
completing the development is the capacity that is fundamentally significant in history.
Normal businesspeople trademark are assurance, insight, readiness, and vitality. It is likewise
noticed that business is eluded as development alongside advancement completion. It is
noticed that business enterprise is considered a tremendous theme that incorporates key parts
of development and economy (Acs, Szerb, and Autio, 2015).
It is likewise obvious from the paper that enterprise is just conceivable through the new
creative thoughts that get new companies the market. So as to have new companies,
development is imperative to have the speculation, and every one of the drivers' leads towards
monetary development (Spigel, 2017). For the new companies to develop and catch the great
piece of the pie, it's significant for them to investigate the market and comprehend the
requirements of the clients and a short time later attempt to get new and remarkable things the
market. From the previous investigation, it has found that the enterprise is one of the effective
drivers of innovation which play a crucial character in economic growth and startup
companies.

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3. Recommendation and conclusion
This proposed research is based on the innovation and entrepreneurship where the importance
of both these factors are discussed and analyzed. It is identified that lack of communication
and experience both are risk factors which may impact on the economic growth and
performance of startup companies. Therefore, it is recommended that entrepreneurs should
focus on the requirements of companies and provide better solutions to the companies by
which they can enhance their productivity and effectiveness. Moreover, Innovation is a key
part of startup entrepreneurs that has the capability to reduce complexity from the system and
enhance the efficiency of developed systems.
A recent article identified that there are common 5 mechanisms to promote innovation in the
area of small startup entrepreneur such as broadcast search, brainstorming, licensing out,
connecting, and expert teams. The most common mechanism of innovation is a broadcast
search that includes publishing the innovation request as a challenge in terms of risks and
issues. Therefore, it is suggested that companies should include information and
communication technologies while implementing startup ideas because of their ability to
reduce complexity and provide real-time communication between entrepreneurs and
stakeholders. Moreover, companies can adopt both innovation and entrepreneurs while
implementing startup ideas these factors may help in the enhancement of economic growth.
This research report critically reviewed the key aspects of innovation and entrepreneurship
and also highlighted various dimensions and drivers which enhance economic growth of
startup companies.
It is recognized advancement is a specific instrument of business visionaries by which they
adventure changes as far as business or administrations. The past examinations gave data
about the advancement and enterprise however did not inspect their different measurements
which produce a hole in the exploration. The ebb and flow research assesses and breaks down

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the various elements of development and drivers utilized in the development of financial
aspects. It is observed that there are major four dimensions of innovations which are
described in this report and also examined the different drivers used by entrepreneurssw3 for
improving economic growth.
Moreover, in this research, a literature review is conducted that improved the quality of the
research and also helped in analyzing and evaluating the key aspects related to innovation and
entrepreneurship. Therefore, it is reported that the concepts behind innovation and
entrepreneurship are a more distinctive contribution to economic growth and small startup
companies. It is observed that in the last few years most of the researchers provided same
points and conclusion towards the innovation and entrepreneurship which supported that
using innovation and entrepreneurship in the startup companies can reduce barriers and
enhance economic growth. However, this report shows the competitive advantages of
innovation and entrepreneurship in the case of small startup companies and economic growth.

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4. References
Acs, Z.J., Stam, E., Audretsch, D.B. and O’Connor, A., (2017) The lineages of the
entrepreneurial ecosystem approach. Small Business Economics, 49(1), pp.1-10.
Acs, Z.J., Szerb, L. and Autio, E., (2015) The global entrepreneurship and development
index. In the Global Entrepreneurship and Development Index 2014, 12(6), pp. 39-64.
Capello, R. and Lenzi, C., (2016) Innovation modes and entrepreneurial behavioural
characteristics in regional growth. Small Business Economics, 47(4), pp.875-893.
Cavusgil, S.T. and Knight, G., (2015) The born global firm: An entrepreneurial and
capabilities perspective on early and rapid internationalization. Journal of International
Business Studies, 46(1), pp.3-16.
Gërguri‐Rashiti, S., Ramadani, V., Abazi‐Alili, H., Dana, L.P. and Ratten, V., (2017) ICT,
innovation and firm performance: the transition economies context. Thunderbird
International Business Review, 59(1), pp.93-102.
Guerrero, M., Urbano, D., Fayolle, A., Klofsten, M. and Mian, S., (2016) Entrepreneurial
universities: emerging models in the new social and economic landscape. Small Business
Economics, 47(3), pp.551-563.
Jessop, B., (2019) Entrepreneurial City. The Wiley Blackwell Encyclopedia of Urban and
Regional Studies, 12(8), pp.1-10.
Malecki, E.J., (2018) Entrepreneurs, networks, and economic development: A review of
recent research. In Reflections and extensions on key papers of the first twenty-five years of
advances, 12(4), pp. 71-116.

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Malecki, E.J., (2018) Entrepreneurs, networks, and economic development: A review of
recent research. In Reflections and extensions on key papers of the first twenty-five years of
advances, 12(6), pp. 71-116.
Morris, M.H., Neumeyer, X. and Kuratko, D.F., (2015) A portfolio perspective on
entrepreneurship and economic development. Small Business Economics, 45(4), pp.713-728.
Pugliese, R., Bortoluzzi, G. and Zupic, I., (2016) Putting process on track: empirical research
on start-ups’ growth drivers. Management Decision, 54(7), pp.1633-1648.
Schmitz, A., Urbano, D., Dandolini, G.A., de Souza, J.A. and Guerrero, M., (2017)
Innovation and entrepreneurship in the academic setting: a systematic literature
review. International Entrepreneurship and Management Journal, 13(2), pp.369-395.
Schmitz, A., Urbano, D., Dandolini, G.A., de Souza, J.A. and Guerrero, M., (2017)
Innovation and entrepreneurship in the academic setting: a systematic literature
review. International Entrepreneurship and Management Journal, 13(2), pp.369-395.
Spigel, B., (2017) The relational organization of entrepreneurial
ecosystems. Entrepreneurship Theory and Practice, 41(1), pp.49-72.
Stam, E., (2015) Entrepreneurial ecosystems and regional policy: a sympathetic
critique. European Planning Studies, 23(9), pp.1759-1769.