Lux-Development S.A. , better known as LuxDev , is the development cooperation agency of the government of Luxembourg .
79-676: It was created in 1978 as an agency to support small and medium enterprises in Luxembourg and only became an agency for development cooperation in 1992. Now, LuxDev is a société anonyme (S.A.) whereby their stockholders are the state of Luxembourg (98%) and the state-owned bank Société Nationale de Crédit et d'Investissement (2%). According to the OECD , Luxembourg’s total ODA (USD 530 million, preliminary data) increased in absolute terms in 2022 due to an increase in bilateral grants, mostly for humanitarian aid. ODA continued to represent 1% of GNI. LuxDev
158-480: 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,
237-471: A definition is given to explain what constitutes a micro-enterprise or a small enterprise or a medium enterprise. If an enterprise does not fall under the above categories, it would be considered a large-scale enterprise. In June 2020, India updated the definition as follows: Businesses that are declared as MSMEs and within specific sectors and criteria can then apply for "priority sector" lending to help with business expenses; banks have annual targets set by
316-481: 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
395-466: 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
474-632: A larger share of small and medium-sized enterprises. SMEs are also responsible for driving innovation and competition in many economic sectors . Although they create more new jobs than large firms, SMEs also suffer the majority of job destruction/contraction. According to the World Bank Group 's 2021 FINDEX database, there is a $ 1.7 trillion funding gap for formal, women-owned micro, small, and medium-sized enterprises. Additionally, over 68% of small women-owned firms lack access to finance. SMEs are important for economic and social reasons, given
553-562: A limit of 255 employees , while in Belgium it could have been 100. The result is that while a Belgian business of 249 employees would be taxed at full rate in Belgium, it would nevertheless be eligible for SME subsidy under a European-labelled programme. 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
632-493: 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
711-464: 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
790-440: 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
869-433: 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
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#1732858915279948-654: A recent European Commission analysis, mid-cap companies (250-3000 people) make up about 17% of total employment and 21% of turnover in the EU27 business sector. Micro firms (with fewer than nine employees) employ 38% of the total workforce, while SMEs with fewer than 250 employees account for 34.4%. Larger (XL) firms with 3,000 or more employees account for 10.1% of overall employment in EU business sectors. According to Eurostat SBS statistics, in 2021, tiny enterprises (0-9 workers) and SMEs (excluding micro firms) employed around 30% and 34.5% of
1027-441: 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 ,
1106-579: 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
1185-464: A successful application of policies to ease financial limitations for SMEs even when they receive help from the banking sector. The EIB Group contributed more than €16.35 billion to small and medium-sized firms in 2022. SMEs were more quick in altering output during the pandemic, despite the intensity of the shock. In reaction to the crisis, one-third of major enterprises altered their output or services, compared to 37% of SMEs. Large businesses, on
1264-402: A total amount of 133,980,096 euros. The agency was certified ISO 9001:2000 in 2005. Small and medium enterprises Small and medium-sized enterprises ( SMEs ) or small and medium-sized businesses ( SMBs ) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by many national agencies and international organizations such as
1343-568: Is exnovation . Surveys of the literature on innovation have found 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
1422-494: Is approximately equal to US$ 3.1 million as of April 2024. Despite their significant contribution to GDP and job creation, Indonesian MSMEs confront a number of obstacles. One of the most significant is capital access: 60-70 percent of MSMEs lack access to financial institutions and their funding options. Other restrictions include inadequate infrastructure, difficulties acquiring company licences and permissions, high tax rates, political insecurity, and improving their brand image in
1501-466: Is available for all EU member country citizens and organizations. Especially, national and regional authorities, enterprises, business associations or organizations, venture capital providers, research and academic institutions, and individual citizens are expected as the main contributors. EU member states have had individual definitions of what constitutes an SME. For example, the definition in Germany had
1580-590: Is between ₦5 million ($ 15,400) to ₦500 million ($ 1,538,000), and a staff strength that is between 11 and 100 employees. In Somalia , the term is SME (for "small, medium, and micro enterprises"); elsewhere in Africa, MSME stands for "micro, small, and medium enterprises". An SME is defined as a small business that has more than 30 employees but less than 250 employees. In the National Small Business Amendment Act 2004, micro-businesses in
1659-485: 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 ,
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#17328589152791738-702: Is headquartered next to the Place des Martyrs in Luxembourg City , but it has regional offices in Pristina ( Kosovo ), Dakar ( Senegal ), Praia ( Cape Verde ), Ouagadougou ( Burkina Faso ), Niamey ( Niger ), Bamako ( Mali ), Kigali ( Rwanda ), Cotonou ( Benin ), Vientiane ( Laos ), and San Jose ( Costa Rica ). LuxDev handles almost all of the resources allocated by the government of Luxembourg to bilateral official development assistance . It can however also execute programmes financed by other bilateral donors and
1817-430: 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
1896-427: Is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro." In order to prepare for an evaluation and revision of some features of the small and medium-sized enterprises definition European Union established public consultation period from 6 February 2018 to 6 May 2018. Public consultation
1975-483: 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
2054-505: 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
2133-461: 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
2212-497: Is part of Egypt's 2012/13 economic census on establishments ranging from small stalls to big enterprises. Economic activity outside the establishments – like street vendors and farmers, for example – were excluded from the census. The results show that Egypt is greatly lacking in medium-sized businesses. Seventy percent of the country's 24 million businesses have only one or two employees. But less than 0.1 percent – only 784 businesses – employ between 45 and 49 people. In Kenya ,
2291-434: Is related to, but not the same as, invention : innovation is more apt to involve 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
2370-469: 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
2449-736: 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
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2528-644: 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
2607-548: The 43 countries assessed in 2017. According to the World Bank, women own 58% of all MSMEs in Africa. The European Investment Bank 's Banking in Africa survey, 2021 suggests that most of the responding banks had a non-performing loan (NPL) ratio of at least 5%. NPLs account for at least 10% of the SME portfolio in approximately one-third of African banks. Furthermore, 50% of the banks had at least 5% of their SME portfolio under
2686-742: The European Commission , SMEs are enterprises which meet the following definition of staff headcount and either the turnover or balance sheet total definitions: In July 2011, the European Commission said it would open a consultation on the definition of SMEs in 2012. A consultation document was issued on 6 February 2018 and the consultation period closed on 6 May 2018. As of November 2019 , no conclusions or responses have yet emerged. In Europe , there are three broad parameters that define SMEs: The European definition of SME follows: "The category of micro, small and medium-sized enterprises (SMEs)
2765-683: The European Commission . The Agency manages projects in 10 sectors : Agriculture, forestry and fishery, Digitalisation and ICT, Education, vocationnal training and employment, Environment and climate change, Food security, Governance, Health, Inclusive and innovative finance, Socio-economic development, and Water and sanitation. Programmes are concentrated in Luxembourg's privileged partner countries: Burkina Faso , Cape Verde , Laos , Mali , Niger and Senegal . Additionally, other countries that receive support are Mongolia , Kosovo , El Salvador , Myanmar , Vietnam , Rwanda and Benin . In 2022 LuxDev managed 90 projects and programmes and disbursed
2844-458: 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
2923-642: 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
3002-630: The World Bank , the OECD , European Union , the United Nations , and the World Trade Organization (WTO). In any given national economy, SMEs outnumber large companies by a wide margin and also employ many more people. On a global scale, SMEs make up 90% of all companies and more than 50% of all employment. For example, in the EU, 99% of all businesses are SMEs. Australian SMEs makeup 98% of all Australian businesses, produce one-third of
3081-535: The moratorium , and 40% had at least 5% of SME loans under some type of restructuring. Most of Egypt 's businesses are small-sized, with 97 percent employing fewer than 10 workers, according to census data released by state-run statistics body CAPMAS (Central Agency for Public Mobilization and Statistics). Medium-sized enterprises with 10 to 50 employees account for around 2.7 percent of total businesses. However, big businesses with over 50 employees account for 0.4 percent of all enterprises nationwide. The data
3160-755: 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
3239-459: 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
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3318-624: The European Union (EU) and employ two-thirds of the workforce in the EU. The majority of European firms are small and medium-sized enterprises (SMEs), employing over 100 million people. Due to the COVID-19 pandemic , a large majority of SMEs saw a decline in revenue during 2020-2021. Medium-sized businesses (or mid-caps) play an important role in the European economy, accounting for a considerable part of employment and wealth production. According to
3397-503: The Prime Minister's Task Force on MSMEs for year-on-year increases of lending to various categories of MSMEs. MSME is considered a key contributor to India's growth and contributes 48% to India's total export . In Indonesia , the government defines micro, small, and medium enterprises ( Indonesian : usaha mikro kecil menengah , UMKM) based on their assets and revenues according to Law No. 20/2008: An annual revenue of Rp 50 billion
3476-411: The SME or the prime reason for the business failing. At the employee level, Petrakis and Kostis (2012) explore the role of interpersonal trust and knowledge in the number of small and medium enterprises. They conclude that knowledge positively affects the number of SMEs, which in turn positively affects interpersonal trust. Note that the empirical results indicate that interpersonal trust does not affect
3555-466: 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
3634-492: 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
3713-491: The capital city of Indonesia, 529 MSMEs with the potential to be funded have been identified by Bank Indonesia . According to the Department of Trade and Industry 's 2020 List of Establishments report, there are 957,620 registered business enterprises operating in the country, composed of 99.51% MSMEs and 0.49% large firms. The MSMEs consist of 88.77% microenterprises, 10.25% small enterprises, and 0.49% medium enterprises. Among
3792-440: The catering, accommodations and other trade sectors as well as in the manufacturing sector, with a maximum of R32 million ($ 2,214,800) in the wholesale trade sector. Medium-sized businesses usually employ up to 200 people (100 in the agricultural sector), and the maximum turnover varies from R5 million ($ 346,100) in the agricultural sector to R51 ($ 3,529,800) million in the manufacturing sector and R64 ($ 4,429,600) million in
3871-423: 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
3950-408: 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,
4029-494: The contribution of a smaller business. Multilateral organizations have been criticized for using one measure for all. The legal boundary of SMEs around the world vary, and below is a list of the upper limits of SMEs in some countries. African small businesses frequently struggle to get the cash they require to thrive. According to the SME Finance Forum, the formal financing gap for African SMEs averaged 17% of GDP across
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#17328589152794108-468: The country's total employment with a 29.38% share from micro-enterprises followed by 25.78% and 7.50% for small and medium enterprises. With effect from 1 April 2011, the definition of SMEs is businesses with annual sales turnover of not more than $ 100 million or employing no more than 200 staff. Small companies are important to the European economy as they account for 99.8% of non-financial enterprises in
4187-440: The different sectors, varying from the manufacturing to the retail sectors, are defined as businesses with five or fewer employees and a turnover of up to R100,000 ZAR ($ 6,900). Very small businesses employ between 6 and 20 employees, while small businesses employ between 21 and 50 employees. The upper limit for turnover in a small business varies from R1 million ($ 69,200) in the agricultural sector to R13 million ($ 899,800) in
4266-559: The digital era. 21st-century businesses strategically use both their websites and social media in order to advertise their products and control their branding . Quality content on both information streams will positively affect branding and attract customers. The People's Business Credit (Kredit Usaha Rakyat, or KUR [ id ] ) was established in 2007 by President Yudhoyono to extend credit to businesses that were considered "feasible but not bankable". Bank Rakyat Indonesia conducts more than half of KUR lending nationwide. In Jakarta ,
4345-723: 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
4424-420: The entire workforce in EU27 business sectors, while bigger firms (250+ employees) contributed for 36.4% of overall employment. The pandemic has had a greater impact on SMEs than on large businesses, with an average sales loss of 26% versus 23% for large businesses. Government assistance appears to have benefited SMEs more than large corporations among the companies that do have overdraft facilities, indicating
4503-564: 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
4582-429: 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,
4661-913: 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
4740-524: 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
4819-479: 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
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#17328589152794898-399: 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
4977-669: 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
5056-420: The number of SMEs. Therefore, although knowledge development can reinforce SMEs, trust becomes widespread in a society when the number of SMEs is greater. Medium- or mid-sized enterprises which have grown beyond the scale of a "small business" may have different support needs from those of small businesses, and their contribution to the local and national economy where they operate may also be quite distinct from
5135-544: The other hand, embraced digitization to a greater extent than small businesses, with 26% boosting their online distribution of products and services, compared to 22% for SMEs. The most significant difference in adaption measures was shown in the chance of expanding remote work, which increased by 25% among SMEs but 50% among large businesses. The criteria for defining the size of a business differ from country to country, with many countries having programs of business rate reduction and financial subsidy for SMEs. According to
5214-464: 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
5293-436: 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,
5372-535: The sector's role in employment. Due to their size, SMEs are heavily influenced by their Chief Executive Officer , a.k.a. CEOs. The CEOs of SMEs are often the founders, owners, and managers of the SMEs. The duties of the CEO in a SME mirror those of the CEO of a large company: the CEO needs to strategically allocate their time, energy, and assets to direct the SMEs. Typically, the CEO is the strategist, champion and leader for developing
5451-434: 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
5530-505: 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 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
5609-482: The term changed to MSME, which stands for "micro, small, and medium-sized enterprises". For micro-enterprises, the minimum number of employees is up to 10 employees. For small enterprises, it is from 10 to 50. For medium enterprises, it is from 50 to 100. The Central Bank of Nigeria defines small and medium enterprises in Nigeria according to asset base and a number of staff employed. The criteria are an asset base that
5688-497: 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 ,
5767-450: The top industry sectors include (1) wholesale and retail trade; repair of motor vehicles and motorcycles (445,386); (2) accommodation and food service activities (134,046); (3) manufacturing (110,916); (4) other service activities (62,376); and (5) financial and insurance activities (45,558) which accounted for about 83.77% of the total number of MSME establishments. Prior to the pandemic, MSMEs generated more than 5.38 million jobs or 62.66% of
5846-453: The total GDP (gross domestic product) and employ 4.7 million people. In Chile , in the commercial year 2014, 98.5% of the firms were classified as SMEs. In Tunisia , the self-employed workers alone account for about 28% of the total non-farm employment, and firms with fewer than 100 employees account for about 62% of total employment. United States' SMEs generate half of all U.S. jobs, but only 40% of GDP. Developing countries tend to have
5925-517: 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
6004-1438: The wholesale trade, commercial agents and allied services sector. A comprehensive definition of an SME in South Africa is, therefore, an enterprise with one or more of the following characteristics: SMEs account for nearly 90% of all company entities in developing Asian countries and are the principal private sector employers, supplying 50-80% of all jobs. SMEs cover 97-99% of all firms in South-east Asia , contributing considerably to each country's GDP—for example, 46% in Singapore, 57% in Indonesia, and over 40% in other nations. In Bangladesh , Bangladesh Bank defines Small and medium enterprises based on fixed assets , employed manpower and yearly turn over, and they are definitely not Public Limited Co. and requires these characteristics: Key: SE = Small enterprises; ME = Medium enterprises; N/A = Not Applicable; Tk lakhs= × 100,000 Bangladeshi takas Hong Kong defines Small and Medium Enterprises (SMEs) as any manufacturing business that employs less than 100 people or any non-manufacturing business that employs less than 50 people. 98% of business establishments in Hong Kong are defined as SMEs and employed 45% of
6083-675: The work force. India defines Micro, Small and Medium Enterprises based on dual criteria of investment and turnover. This definition is provided in Section 7 of Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) and was notified in September 2006. The Act provides for the classification of enterprises based on their investment size and the nature of the activity undertaken by that enterprise. As per MSMED Act, enterprises are classified into two categories - manufacturing enterprises and service enterprises. For each of these categories,
6162-652: 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
6241-499: 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
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