Innovation

The latin term, innovation refers to the renewal or change of something.

“Innovation is the transformation of an idea into a new or renewed product or a new or renewed method used in the industry and commerce or a new approach of a social service. When firms innovate, they are engaging in a complex set of activities with multiple outcomes, some of which, moreover, can reshape the boundaries and nature of the firm itself.”  states the Frascati Manual (OECD, 1996)

Schumpeter finds the engine of the capitalist development in innovation when entrepreneurial activity serves as resource to innovation.

The narrow definition of innovation declares that innovation is a scientific, technical and technological related process that concludes in economic welfare by renewal. Innovation joins a development, production and sales chain based on a basic idea or the results of research.

These elements form the market-oriented innovation chain.