Innovation Strategy

In: Business and Management

Submitted By PinkyTang
Words 1650
Pages 7
1.Strategy for innovation
Innovation: applications of new ideas to the products and processes that increase commercial values.

Five techniques for innovating by using existing resources (inside the box):
Subtraction: generating a new innovation by removing the existing components.
Division: separate an object or service to multiple parts and rearrange the parts into something new.
Multiplication: duplicate a current components and innovation by removing the existing components.
Task unification: unifying unrelated functions or tasks.
Attribute dependency: make previously independent attributes dependent on one another.

Generating new ideas is easy, but making them into innovation is hardneed innovation strategy.

Innovation strategy: long-term plan that improves firm’s innovation success rate. A good innovation strategy invests in innovation projects that align with company’s resources and capabilities and satisfy customers’ needs.
Why important?
It enables firm to introduce innovations to marketplace and thus remain competitive.
It helps enhance the existing products and services so that improve customers’ utility.
It improves the efficiency and output of the process of innovation.
It helps to understand and manage the risk associated with innovation.

2.Inspiring innovation
Internal sources of innovation * R&D: investment in basic researches (researches that advance knowledge)
Investment in applied researches (researches for specific problem or topic, usually with commercial object, followed by development to create product)--different spending on applied and basic researches for different firms (low-tech and high tech); difference spending between firms and government. * Incentives (financial or non-financial) for employees to come up with new ideas.

Usually, firms tend to spend more on applied researches while government…...

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