Nature of Innovation

Innovation in business is developing an idea or invention that increases efficiency, raises productivity, or creates value for which customers will pay. Innovation applies information, imagination, and initiative in ways that further the goals of the organization to satisfy customer expectations. Today, virtually every business believes that innovation is necessary for its sustainability and growth. One of the most powerful drivers of innovation is technology. Not only is technology scalable (able to handle increasing amounts of work) but it can also be used to leverage and produce new innovations. Economists traditionally viewed competition as a function of investment, labor and other costs, and the general business climate . Today, competitiveness is based more on the ability to keep up with rapid technological and organizational changes. In a dynamic world, many people use the catchphrase "innovation-led economy."