Misplaced Pages

#603396

55-563: The Global Innovation Index is an annual ranking of countries by their capacity for, and success in, innovation , published by the World Intellectual Property Organization (WIPO). It was started in 2007 by INSEAD and World Business , a British magazine. Until 2021 it was published by WIPO, in partnership with Cornell University , INSEAD and other organisations and institutions. It is based on both subjective and objective data derived from several sources, including

110-480: A performance-measurement data and management system that allows city officials to maintain statistics on several areas from crime trends to the conditions of potholes . This system aided in better evaluation of policies and procedures with accountability and efficiency in terms of time and money. In its first year, CitiStat saved the city $ 13.2 million. Even mass transit systems have innovated with hybrid bus fleets to real-time tracking at bus stands. In addition,

165-481: A firm, other types of innovation include: social innovation , religious innovation, sustainable innovation (or green innovation ), and responsible innovation . One type of innovation that has been the focus of recent literature is open innovation or " crowd sourcing ." Open innovation refers to the use of individuals outside of an organizational context who have no expertise in a given area to solve complex problems. Similar to open innovation, user innovation

220-466: A great deal of innovation is done by those actually implementing and using technologies and products as part of their normal activities. Sometimes user-innovators may become entrepreneurs , selling their product, they may choose to trade their innovation in exchange for other innovations, or they may be adopted by their suppliers. Nowadays, they may also choose to freely reveal their innovations, using methods like open source . In such networks of innovation

275-1070: A high degree of consolidation over the past couple of decades. Between 1995 and 2018 around 37,039 mergers and acquisitions have been announced with a total known value of US$ 1,166 billion. The highest number and value of deals was set in 2000 during the high times of the dot-com bubble with 2,674 transactions valued at US$ 105 billion. In 2017, 2,547 deals were announced valued at US$ 111 billion. Approaches to successfully acquire and integrate software companies are available. Software industry business models include SaaS (subscription-based), PaaS (platform services), IaaS (infrastructure services), and freemium (free with premium features). Others are perpetual licenses (one-time fee), ad-supported (free with ads), open source (free with paid support), pay-per-use (usage-based), and consulting/customization services. Hybrid models combine multiple approaches. Business models of software companies have been widely discussed. Network effects in software ecosystems , networks of companies, and their customers are an important element in

330-554: A particular machine for no charge. Others were done on a commercial basis, and other firms such as Computer Sciences Corporation (founded in 1959) started to grow. Other influential or typical software companies begun in the early 1960s included Advanced Computer Techniques , Automatic Data Processing , Applied Data Research , and Informatics General . The computer/ hardware makers started bundling operating systems , systems software and programming environments with their machines. When Digital Equipment Corporation (DEC) brought

385-493: A political setting. Machiavelli portrays it as a strategy a Prince may employ in order to cope with a constantly changing world as well as the corruption within it. Here innovation is described as introducing change in government (new laws and institutions); Machiavelli's later book The Discourses (1528) characterises innovation as imitation, as a return to the original that has been corrupted by people and by time. Thus for Machiavelli innovation came with positive connotations. This

440-464: A product or service based on the known needs of current customers (e.g. faster microprocessors, flat screen televisions). Disruptive innovation in contrast refers to a process by which a new product or service creates a new market (e.g. transistor radio, free crowdsourced encyclopedia, etc.), eventually displacing established competitors. According to Christensen, disruptive innovations are critical to long-term success in business. Disruptive innovation

495-440: A public service institution, or a new venture started by a lone individual in the family kitchen. It is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth. In general, innovation is distinguished from creativity by its emphasis on the implementation of creative ideas in an economic setting. Amabile and Pratt in 2016, drawing on

550-433: A range of different agents, by chance, or as a result of a major system failure. According to Peter F. Drucker , the general sources of innovations are changes in industry structure, in market structure, in local and global demographics, in human perception, in the amount of available scientific knowledge, etc. In the simplest linear model of innovation the traditionally recognized source is manufacturer innovation . This

605-486: A relatively low-priced microcomputer to market, it brought computing within the reach of many more companies and universities worldwide, and it spawned great innovation in terms of new, powerful programming languages and methodologies. New software was built for microcomputers, so other manufacturers including IBM, followed DEC's example quickly, resulting in the IBM AS/400 amongst others. The industry expanded greatly with

SECTION 10

#1732845490604

660-441: A result, organizations may incorporate users in focus groups (user centered approach), work closely with so-called lead users (lead user approach), or users might adapt their products themselves. The lead user method focuses on idea generation based on leading users to develop breakthrough innovations. U-STIR, a project to innovate Europe 's surface transportation system, employs such workshops. Regarding this user innovation ,

715-579: A study of how the software industry considers innovation, the following definition given by Crossan and Apaydin was considered to be the most complete. Crossan and Apaydin built on the definition given in the Organisation for Economic Co-operation and Development (OECD) Oslo Manual: Innovation is production or adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres; renewal and enlargement of products, services, and markets; development of new methods of production; and

770-497: A variety of definitions. In 2009, Baregheh et al. found around 60 definitions in different scientific papers, while a 2014 survey found over 40. Based on their survey, Baragheh et al. attempted to formulate a multidisciplinary definition and arrived at the following: "Innovation is the multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace" In

825-865: Is calculated by the weighted average method. Since its inception in 2007, an increasing number of governments systematically analyze their annual GII results and design policy responses to improve their performance. The index is mentioned in a resolution on science, technology and innovation for sustainable development adopted on 19 December 2019 by the General Assembly of the United Nations . The index has been criticized for giving excessive significance attributed to factors that aren’t integral to innovation. For instance, “ Ease of Paying Taxes “, “ Electricity Output “ (half-weightage) and “Ease of Protecting Minority Investors” are factors alongside “ Ease of Getting Credit ” and “ Venture Capital Deals “. Every two years

880-485: Is changing with the increased use of technology and companies are becoming increasingly competitive. Companies will have to downsize or reengineer their operations to remain competitive. This will affect employment as businesses will be forced to reduce the number of people employed while accomplishing the same amount of work if not more. For instance, former Mayor Martin O'Malley pushed the City of Baltimore to use CitiStat ,

935-430: Is however an exception in the usage of the concept of innovation from the 16th century and onward. No innovator from the renaissance until the late 19th century ever thought of applying the word innovator upon themselves, it was a word used to attack enemies. From the 1400s through the 1600s, the concept of innovation was pejorative – the term was an early-modern synonym for "rebellion", "revolt" and " heresy ". In

990-405: Is in descending order by score. Innovation Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a new or changed entity, realizing or redistributing value ". Others have different definitions; a common element in

1045-483: Is new to the firm, new to the market, new to the industry, or new to the world) and kind of innovation (i.e. whether it is process or product-service system innovation). Organizational researchers have also distinguished innovation separately from creativity, by providing an updated definition of these two related constructs: Workplace creativity concerns the cognitive and behavioral processes applied when attempting to generate novel ideas. Workplace innovation concerns

1100-505: Is often enabled by disruptive technology. Marco Iansiti and Karim R. Lakhani define foundational technology as having the potential to create new foundations for global technology systems over the longer term. Foundational technology tends to transform business operating models as entirely new business models emerge over many years, with gradual and steady adoption of the innovation leading to waves of technological and institutional change that gain momentum more slowly. The advent of

1155-461: Is often used to help optimize the design of web sites and mobile apps . This is used by major sites such as amazon.com , Facebook , Google , and Netflix . Procter & Gamble uses computer-simulated products and online user panels to conduct larger numbers of experiments to guide the design, packaging, and shelf placement of consumer products. Capital One uses this technique to drive credit card marketing offers. Scholars have argued that

SECTION 20

#1732845490604

1210-469: Is sometimes used in pharmaceutical drug discovery . Thousands of chemical compounds are subjected to high-throughput screening to see if they have any activity against a target molecule which has been identified as biologically significant to a disease. Promising compounds can then be studied; modified to improve efficacy and reduce side effects, evaluated for cost of manufacture; and if successful turned into treatments. The related technique of A/B testing

1265-662: Is the key element in providing aggressive top-line growth, and for increasing bottom-line results". One survey across a large number of manufacturing and services organizations found that systematic programs of organizational innovation are most frequently driven by: improved quality , creation of new markets , extension of the product range, reduced labor costs , improved production processes , reduced materials cost, reduced environmental damage , replacement of products / services , reduced energy consumption, and conformance to regulations . Software industry The first company founded to provide software products and services

1320-736: Is when companies rely on users of their goods and services to come up with, help to develop, and even help to implement new ideas. Innovation must be understood in the historical setting in which its processes were and are taking place. The first full-length discussion about innovation was published by the Greek philosopher and historian Xenophon (430–355 BCE). He viewed the concept as multifaceted and connected it to political action. The word for innovation that he uses, kainotomia , had previously occurred in two plays by Aristophanes ( c.  446 – c.  386 BCE). Plato (died c.  348 BCE) discussed innovation in his Laws dialogue and

1375-644: Is where a person or business innovates in order to sell the innovation. Another source of innovation is end-user innovation . This is where a person or company develops an innovation for their own (personal or in-house) use because existing products do not meet their needs. MIT economist Eric von Hippel identified end-user innovation as the most important source in his classic book on the subject, "The Sources of Innovation" . The robotics engineer Joseph F. Engelberger asserts that innovations require only three things: The Kline chain-linked model of innovation places emphasis on potential market needs as drivers of

1430-782: The International Telecommunication Union , the World Bank and the World Economic Forum . The index was started in 2007 by INSEAD and World Business , a British magazine. It was created by Soumitra Dutta . The index is computed by taking a simple average of the scores in two sub-indices, the Innovation Input Index and Innovation Output Index, which are composed of five and two pillars respectively. Each of these pillars describe an attribute of innovation, and comprise up to five indicators, and their score

1485-458: The Jevons paradox , that describes negative consequences of eco-efficiency as energy-reducing effects tend to trigger mechanisms leading to energy-increasing effects. Several frameworks have been proposed for defining types of innovation. One framework proposed by Clayton Christensen draws a distinction between sustaining and disruptive innovations . Sustaining innovation is the improvement of

1540-642: The U.S. Department of Housing and Urban Development 's HOPE VI initiatives turned severely distressed public housing in urban areas into revitalized , mixed-income environments; the Harlem Children's Zone used a community-based approach to educate local area children; and the Environmental Protection Agency 's brownfield grants facilitates turning over brownfields for environmental protection , green spaces , community and commercial development . Innovation may occur due to effort from

1595-755: The packet-switched communication protocol TCP/IP —originally introduced in 1972 to support a single use case for United States Department of Defense electronic communication (email), and which gained widespread adoption only in the mid-1990s with the advent of the World Wide Web —is a foundational technology. Another framework was suggested by Henderson and Clark. They divide innovation into four types; While Henderson and Clark as well as Christensen talk about technical innovation there are other kinds of innovation as well, such as service innovation and organizational innovation. As distinct from business-centric views of innovation concentrating on generating profit for

1650-459: The 1800s people promoting capitalism saw socialism as an innovation and spent a lot of energy working against it. For instance, Goldwin Smith (1823-1910) saw the spread of social innovations as an attack on money and banks. These social innovations were socialism, communism, nationalization, cooperative associations. In the 20th century, the concept of innovation did not become popular until after

1705-534: The GII covers a theme related to innovation which goes beyond the innovation rankings. In 2020, the theme was “Who will finance innovation?” shedding light on the state of innovation financing by investigating the evolution of existing mechanisms and pointing to progress and remaining challenges. Previous GII themes covered health innovation, environmental innovation, agricultural and food innovation, and others. The Global Innovation Index 2024 (GII) scores 133 countries. Sorting

Global Innovation Index - Misplaced Pages Continue

1760-466: The Second World War of 1939–1945. This is the point in time when people started to talk about technological product innovation and tie it to the idea of economic growth and competitive advantage. Joseph Schumpeter (1883–1950), who contributed greatly to the study of innovation economics , is seen as the one who made the term popular. Schumpeter argued that industries must incessantly revolutionize

1815-492: The beginning of the 20th century, which had huge impacts for the economic concepts of factor endowments and comparative advantage as new combinations of resources or production techniques constantly transform markets to satisfy consumer needs. Hence, innovative behaviour becomes relevant for economic success. An early model included only three phases of innovation. According to Utterback (1971), these phases were: 1) idea generation, 2) problem solving, and 3) implementation. By

1870-423: The company of Nobel laureate William Shockley , co-inventor of the transistor , left to form an independent firm, Fairchild Semiconductor . After several years, Fairchild developed into a formidable presence in the sector. Eventually, these founders left to start their own companies based on their own unique ideas, and then leading employees started their own firms. Over the next 20 years this process resulted in

1925-408: The concepts of innovation and technology transfer revealed overlap. The more radical and revolutionary innovations tend to emerge from R&D, while more incremental innovations may emerge from practice – but there are many exceptions to each of these trends. Information technology and changing business processes and management style can produce a work climate favorable to innovation. For example,

1980-419: The definitions is a focus on newness, improvement, and spread of ideas or technologies. Innovation often takes place through the development of more-effective products , processes, services , technologies , art works or business models that innovators make available to markets , governments and society . Innovation is related to, but not the same as, invention : innovation is more apt to involve

2035-723: The economic structure from within, that is: innovate with better or more effective processes and products, as well as with market distribution (such as the transition from the craft shop to factory). He famously asserted that " creative destruction is the essential fact about capitalism ". In business and in economics , innovation can provide a catalyst for growth when entrepreneurs continuously search for better ways to satisfy their consumer base with improved quality, durability, service and price - searches which may come to fruition in innovation with advanced technologies and organizational strategies. Schumpeter's findings coincided with rapid advances in transportation and communications in

2090-564: The establishment of new management systems. It is both a process and an outcome. American sociologist Everett Rogers , defined it as follows: "An idea, practice, or object that is perceived as new by an individual or other unit of adoption" According to Alan Altshuler and Robert D. Behn, innovation includes original invention and creative use. These writers define innovation as generation, admission and realization of new ideas, products, services and processes. Two main dimensions of innovation are degree of novelty (i.e. whether an innovation

2145-429: The growing use of mobile data terminals in vehicles, that serve as communication hubs between vehicles and a control center, automatically send data on location, passenger counts, engine performance, mileage and other information. This tool helps to deliver and manage transportation systems. Still other innovative strategies include hospitals digitizing medical information in electronic medical records . For example,

2200-913: The innovation process, and describes the complex and often iterative feedback loops between marketing, design, manufacturing, and R&D. In the 21st century the Islamic State (IS) movement, while decrying religious innovations , has innovated in military tactics, recruitment, ideology and geopolitical activity. Innovation by businesses is achieved in many ways, with much attention now given to formal research and development (R&D) for "breakthrough innovations". R&D help spur on patents and other scientific innovations that leads to productive growth in such areas as industry, medicine, engineering, and government. Yet, innovations can be developed by less formal on-the-job modifications of practice, through exchange and combination of professional experience and by many other routes. Investigation of relationship between

2255-524: The innovator. This concept meant "renewing" and was incorporated into the new Latin verb word innovo ("I renew" or "I restore") in the centuries that followed. The Vulgate version of the Bible (late 4th century CE) used the word in spiritual as well as political contexts. It also appeared in poetry, mainly with spiritual connotations, but was also connected to political, material and cultural aspects. Machiavelli 's The Prince (1513) discusses innovation in

Global Innovation Index - Misplaced Pages Continue

2310-479: The literature, distinguish between creativity ("the production of novel and useful ideas by an individual or small group of individuals working together") and innovation ("the successful implementation of creative ideas within an organization"). In 1957 the economist Robert Solow was able to demonstrate that economic growth had two components. The first component could be attributed to growth in production including wage labour and capital . The second component

2365-399: The main purpose for innovation today is profit maximization and capital valorisation . Consequently, programs of organizational innovation are typically tightly linked to organizational goals and growth objectives, to the business plan , and to market competitive positioning . Davila et al. (2006) note, "Companies cannot grow through cost reduction and reengineering alone... Innovation

2420-669: The momentous startup-company explosion of information-technology firms. Silicon Valley began as 65 new enterprises born out of Shockley's eight former employees. All organizations can innovate, including for example hospitals, universities, and local governments. The organization requires a proper structure in order to retain competitive advantage. Organizations can also improve profits and performance by providing work groups opportunities and resources to innovate, in addition to employee's core job tasks. Executives and managers have been advised to break away from traditional ways of thinking and use change to their advantage. The world of work

2475-464: The political and societal context in which innovation is taking place. According to Shannon Walsh, "innovation today is best understood as innovation under capital" (p. 346). This means that the current hegemonic purpose for innovation is capital valorisation and profit maximization, exemplified by the appropriation of knowledge (e.g., through patenting ), the widespread practice of Planned obsolescence (incl. lack of repairability by design ), and

2530-421: The practical implementation of an invention (i.e. new / improved ability) to make a meaningful impact in a market or society, and not all innovations require a new invention. Technical innovation often manifests itself via the engineering process when the problem being solved is of a technical or scientific nature. The opposite of innovation is exnovation . Surveys of the literature on innovation have found

2585-436: The processes applied when attempting to implement new ideas. Specifically, innovation involves some combination of problem/opportunity identification, the introduction, adoption or modification of new ideas germane to organizational needs, the promotion of these ideas, and the practical implementation of these ideas. Peter Drucker wrote: Innovation is the specific function of entrepreneurship, whether in an existing business,

2640-488: The rise of the personal computer ("PC") in the mid-1970s, which brought desktop computing to the office worker for the first time. In the following years, it also created a growing market for games, applications, and utilities. DOS , Microsoft 's first operating system product, was the dominant operating system at the time. In the early years of the 21st century, another successful business model has arisen for hosted software, called software-as-a-service , or SaaS; this

2695-434: The software tool company Atlassian conducts quarterly "ShipIt Days" in which employees may work on anything related to the company's products. Google employees work on self-directed projects for 20% of their time (known as Innovation Time Off ). Both companies cite these bottom-up processes as major sources for new products and features. An important innovation factor includes customers buying products or using services. As

2750-497: The time one completed phase 2, one had an invention, but until one got it to the point of having an economic impact, one did not have an innovation. Diffusion was not considered a phase of innovation. Focus at this point in time was on manufacturing. A prime example of innovation involved the boom of Silicon Valley start-ups out of the Stanford Industrial Park . In 1957, dissatisfied employees of Shockley Semiconductor ,

2805-517: The users or communities of users can further develop technologies and reinvent their social meaning. One technique for innovating a solution to an identified problem is to actually attempt an experiment with many possible solutions. This technique was famously used by Thomas Edison's laboratory to find a version of the incandescent light bulb economically viable for home use, which involved searching through thousands of possible filament designs before settling on carbonized bamboo. This technique

SECTION 50

#1732845490604

2860-526: Was Computer Usage Company in 1955. Before that time, computers were programmed either by customers, or the few commercial computer vendors of the time, such as Sperry Rand and IBM . The software industry expanded in the early 1960s, almost immediately after computers were first sold in mass-produced quantities. Universities, government, and business customers created a demand for software. Many of these programs were written in-house by full-time staff programmers. Some were distributed freely between users of

2915-588: Was at least the third time this model had been attempted. From the point of view of producers of some proprietary software , SaaS reduces the concerns about unauthorized copying , since it can only be accessed through the Web, and by definition no client software is loaded onto the end user's PC. The global software products market amounts to US$ 968.25 billion in 2021 and had a compound annual growth rate (CAGR) of 4%. Major companies include Microsoft, HP , Oracle , Dell and IBM. The software industry has been subject to

2970-652: Was found to be productivity . Ever since, economic historians have tried to explain the process of innovation itself, rather than assuming that technological inventions and technological progress result in productivity growth. The concept of innovation emerged after the Second World War, mostly thanks to the works of Joseph Schumpeter (1883–1950) who described the economic effects of innovation processes as Constructive destruction . Today, consistent neo-Schumpeterian scholars see innovation not as neutral or apolitical processes. Rather, innovation can be seen as socially constructed processes. Therefore, its conception depends on

3025-499: Was not very fond of the concept. He was skeptical to it both in culture (dancing and art) and in education (he did not believe in introducing new games and toys to the kids). Aristotle (384–322 BCE) did not like organizational innovations: he believed that all possible forms of organization had been discovered. Before the 4th century in Rome, the words novitas and res nova / nova res were used with either negative or positive judgment on

#603396