On Innovation « INNOVATION IN MIND

6Sep/090

On Innovation

Innovation. There are few words that during the last few years have been so hyped, so discussed and so favored as the key to corporate success. Academics as well as practitioners have embraced innovation as "the thing" that not only is a pre-requisite, but if properly managed, will lead to competitive advantage. But what do we really mean when we say "that's an innovation" or "that's innovative"? Given the vast array of definitions that exist it is not easy to pinpoint the core meaning, but if broken down it revolves around aspects of newness or improvements of already existing products or services. It is now easy to assume that innovation only is about coming up with or introducing a new product or a new service. It is not. Innovation in our modern day is an all out organizational venture. It involves development, pilot testing, production, marketing and market services. Innovation is thus not just about begin creative, it is as much, if not more, about implementation. An issue that becomes even more intriguing as innovation increasingly tend to permeate company boundaries. If you hesitate in arguing that innovation is important, remember that out of the 500 companies that in 1947 was on the S&P 500, only 74 remained in 1997. Innovation matters and companies as well as public officials should have innovation in mind.

About Fredrik Häglund

Researcher from School of Economics and Management at Lund University within the area of innovation management. His special interest lies with high-tech and dynamic industries, especially platform competition. He also runs his own company.