Following our live and archived discussions from last week and tonight, and your research and experience, what light can you shed on this question? Asked in other ways, the question could be:
Are entrepreneurs innovative?
or,
Are innovators entrepreneurs?
Illustrate your comments with examples from industry, providing references and links.
According to
http://innovateonpurpose.blogspot.com/2006/10/invention-innovation-and-entrepreneurs.html
Innovation is “PEOPLE PUTTING IDEAS INTO VALUABLE ACTION”.
It goes on to say that “entrepreneurs are important to innovation, but in no way define the entire scope or possibility of innovation.”
While Entrepreneurs are innovative in developing a new idea/product and taking it to the market in an attempt to make money, others can also be innovative. This can be a trait of a leader, manager, or intellectual. It can simple mean having an idea to better a procedure or a practice within an existing market/company. This may not be a totally new concept or idea just an improvement on and existing one. Innovation is simply putting an idea into action to better the organization. The Entrepreneur is more about new concepts and new ideas in order to fill a void in the market.
So, you seem to be saying, like Brad, that entrepreneurs can be innovators, but innovators are not necessarily entrepreneurs…However, the opening statement presents an opposing view. PC
Does a new product or idea need to add value to be considered innovative? The Segway was truly innovative but did not even come close to live up to the hype surrounding it. Just how much value did the Segway add upon release?
Joshua, this is a good question that sheds light on the statement that innovation does not necessarily imply added value (more akin to the intellectual), whereas entrepreneurship cannot flourish without adding value. PC
Technological innovation and commercialization are key components of entrepreneurship.On the one hand, innovation is considered a cornerstone of entrepreneurial activity .On the other hand, entrepreneurial activity is viewed as a means for generating innovations. it follows that policies supporting innovation efforts will be likely to have an effect on entrepreneurial activity.In my view innovation which consists of invention and implementation, depends on policies that “encourage entrepreneurship, risk-taking investment, and technological change.” These innovation policies include sponsorship of economic initiatives and science and technology initiatives for the development and commercialization of inventions.
Agree, Venkat… how about some references/links? PC
An entrepreneur is the one who takes the step to take a risk which might be a new idea or an existing one .so relationship in terms or risk is what exist between both entrepreneur and innovation.
I get the point, Venkat, but it could be stated more clearly… PC
Entrepreneurship is taking control and action on a concept or a dream in the face of adversity. The way of making that happen is where innovation comes in. For example, I want people to communicate with each other over long distances (the dream), therefore I am going to do something about it and put in more of my time and my money to do it even when everyone is saying it cannot be done/I am mad/it is too risky (entrepreneurship/the risk) and a phone is designed to achieve this (the innovation to achieve the dream). A combination of both is the ‘big picture’ that requires passionate people to turn an idea into reality by being independent and in
control.
http://www.igi-global.com/downloads/excerpts/ITB12148.pdf
Very good, Sreesh … PC
Sreesh,your points are very intresting and i hope you have visualized the big picture…..
PLEASE NOT THE CORRECTION :Correction to the my blog posted Feb 12th 2009 at 12:26 PM.
It is 2 hydrogen and one oxygen make the water. So example above OXYGEN represents innovation in entrepreneurship.
Thank you
Roy
Yes, Roy, as in H(2)O…PC
Innovation in Action – A TRURE STORY
One great example of innovation in action was the development of the Post-It Note – its evolution demonstrates the key principles of innovation. In 1968 Dr Spence Silver when working for 3M was researching new versions of adhesives. He came up with one was slightly sticky but not sufficient to bind itself to anything. He knew it was unusual but could not find an immediate use for it.
It wasn’t until 1973 that having shared the concept with another person it went to the next level. His partner within the company, Geoff Nicholson championed it as a way of sticking items on notice boards but the idea still didn’t capture anyone’s imagination.
Finally another 3M employee, Art Fry, upon seeing one of the many presentations began to see the light. He also saw something in the product but like everyone else was struggling to make the final leap. His ‘eureka’ moment came when he became frustrated at how the bookmarks for his hymn book kept falling out – the unstickable adhesive had finally found its purpose!
See how the development of the Post-It Note fits in with the principles of innovation – curiosity; persistence; sharing the discovery; preparing to accept the plain weird (glue that doesn’t stick??). It’s all there in the development of this simple yet highly useful product.
http://ezinearticles.com/?Being-an-Innovative-Entrepreneur&id=452482
Development of post-it story shows that entrepreneurs are innovators. In this innovation you can see the risk that is related to the process. Now if you think about the attributes that is important to entrepreneurs you can see that innovation is one of the important one.
To make water you need one hydrogen and 2 oxygen. 2 oxygen cannot make the water. Innovation is like the hydrogen in the water. It is hard to be entrepreneur with out innovation.
Yes, Roy, this is a very interesting example of innovation and entrepreneurship, by accident in some respects…H(2)O…PC