The term innovation is one of the most misused and poorly defined terms when discussing economic growth and development. Innovation typically has a modifier in front to distinguish varying levels of value delivered and the impact to the market and some cases the world. ConradWai, CEO of Jump Ventures, defines three types of innovation: Sustaining Innovations maintain or grow market share, improve profit by gaining efficiencies and reducing costs, and often are seen as incremental improvements. The end goal for any sort of innovation pursuit is to create value. By creating something of value one hopes to attract a buyer and make a profit. Value is a two sided coin: both sides are important and each side is dependent on the other. The sides of the coin are the producer and the consumer. Disruptive Innovations are where the product or service propagates shock waves through market, changing producer and consumer behavior, and rendering existing solutions obsolete. Plastics as a whole are considered an example of a disruptive innovation.
Bachman, B., & Bozzone, S. O. (2013). Managing Innovation. Plastics Engineering, 69(3), pp. 12-15. Wiley-Blackwell.
Keywords and Phrases
Disruptive innovations; Economic growths; Incremental improvements; Managing innovation; Market share; Reducing costs; Types of innovations, Competition; Economics; Profitability, Commerce
International Standard Serial Number (ISSN)
Article - Journal
© 2013 Wiley-Blackwell, All rights reserved.
01 Mar 2013