A grand strategy that seeks to reap the premium margins associated with creation and customer acceptance of a new or greatly improved product or service.

The initial commercialization of invention by producing and selling a new product, service, or process .

Innovation is the process of creating something new, which is central to the entrepreneurial process. According to the National Federation for Independent Business, small firms (fewer than 500 employees) are twice as innovative per employee as larger firms. In addition, small innovative firms produce 13 times more patents per employee than large patenting firms, and their patents are twice as likely as large firm patents to be among the 1 percent most cited (which is an indication of their influence).

Innovation producers (including private companies) will endeavor to develop new products (new goods or services) and new processes (new ways of producing those goods or services), with the goal (in a capitalist context) of enhancing market share and hence profitability. More generally, innovation simply refers to finding better ways to produce better goods and services.

Webster Dictionary Meaning

1. Innovation
- The act of innovating; introduction of something new, in customs, rites, etc.
- A change effected by innovating; a change in customs; something new, and contrary to established customs, manners, or rites.
- A newly formed shoot, or the annually produced addition to the stems of many mosses.
Share it:  Cite

More from this Section

  • Cross-functional teams
    Cross-functional teams, which are work teams composed of individuals from various functional ...
  • Full Employment
    Full Employment is a condition in which every willing worker is able to find a paying ...
  • Role of Manager
    As a manager attempts to perform the management job, there are some roles required of ...
  • Administration
    Administration is the appointment by a court of a person to manage the affairs of a company ...
  • Monetarism
    Monetarism is strictly speaking, monetarism was a right-wing economic theory (associated ...