What is the relationship between Entrepreneurship and Innovation?
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.
Entrepreneurship needs innovation as it’s primarily tool, while innovation requires entrepreneurship in order to achieve success. Innovation is critical component of entrepreneurship but not a synonym for it.
(The Creative Enterprise
By Tony Davila, Marc J. Epstein, Robert D. Shelton)
http://books.google.com/books?id=KmzWgSS4kiEC&pg=PA127&dq=relationship+Entrepreneurship+and+innovation
Well stated, Fahed. PC
In response to the question of an innovator who does not proceed beyond creating an innovation:
An innovator that does not proceed beyond creating the innovation is still an innovator since they created the original innovation. However, a true innovator will always be creating new innovations even beyond their initial innovation. If an innovator does continue to improve on their innovation they will inspire others to innovate and expand from their original innovation.
Well stated brad. Consider also the Intellectual archetype in you example. PC
Opportunity! A good entrepreneur not only innovates, but also RECOGNIZES opportunity and jumps on it. Resources though are limited, hence they sometimes make decisions to move on to something else that brings a bigger reward, in whatever sense of the word. Thus, it is possible the innovating entrepreneur does not further or see the product through all the way.
Yes, Jimy…recognizing opportunity, and pouncing on it describes an aspect of the entrepreneur well… PC
I have noticed that Joshua has already posted this reference on the Blog. Please disregard my last post. Thank you!
Innovations can be large or small and process- or product-oriented. They can affect the way we think or act. They can be minor enhancements or a totally new way of doing something. They can be an incremental product change or something completely new. Entrepreneurs, on the other hand, take a concept, product or service and sell it to the community. They set up the business which allows a new or existing product or service to become a profitable business. They do not have to innovate.
An entrepreneur with an innovative idea is a rare and valuable find. These are the people who gave us the Pet Rock and convinced us we could order books from an online store. They have delivered a new kind of cell phone (iPhone) and are remaking department stores, grocery stores and distributorships.
Everyone is capable of coming up with the idea. Put that together with someone who can execute a plan.
Reference: http://www.inddist.com/blog/1340000134/post/1630020563.html
Article “Innovation vs. Entrepreneurship”
Entrepreneurs are different from each other, but successful entrepreneurs tend to share certain characteristics. Entrepreneurs are innovative. The come up with creative innovative products which provide a unique identity. Most of innovative entrepreneurs are the ones who stand out in envy. Because of the following reasons
• Coming up against a problem and actively deciding to find a solution to solve it
• They keep an open eye and mind
• They are open to new ideas in other words they seek out people from all walks of live who can give them insights from.
• They are ready to get into action and they are always in a mental state of preparedness, and they are persistent
• be passionate about achieving their goals
• have a spirit of adventure (in fact, the word “adventure” is derived from the Latin word meaning “to venture”)
• have a strong need to achieve and seek personal accomplishment
• be self-confident and self-reliant
• be goal-oriented
• be innovative, creative, and versatile
• be persistent
• be hardworking and energetic
• have a positive attitude
• be willing to take initiative
• have a strong sense of commitment
Source: http://ezinearticles.com/?Being-an-Innovative-Entrepreneur&id=452482
Innovation in Action
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.
Innovative ideas do not have to be the preserve of the lucky few.
Detailed and helpful comments, Chandrika. Thanks. PC
One definition of innovation given by Webster is “something newly introduced; new method, custom, device, etc.” and for innovate my computer dictionary gives “(of a person) introducing new ideas; original and creative in thinking: an innovative thinker.” Now, Entrepreneurs are archetypes looking for opportunity to do something not yet done; to fill a need or void – this often requires innovation. I think by the definitions given, we can see the Entrepreneur represented well.
Innovation requires some amount of risk to be taken due to the uncertainty of the results of your endeavor. By nature, Entrepreneurs are risk takers.
Interesting comparison and conclusion, Chris. PC