- QUESTION 1.
2.1 Innovation Vs invention.
2.2 Different innovations in economics and business studies.
2.3 Innovational and formal mathematical models.
- QUESTION 2.
3.1 Technological capability, social capability and Systemic innovation.
3.2 Aspects of social capability that affect innovation processes and economic development.
- QUESTION 3.
4.1 Main channels of developing countries and their firms to accumulate and transfer technical knowledge and innovation capabilities from abroad.
4.2 The ways of technological learning process companies by participating Global Value Chains (GVC).
- QUESTION 4.
5.1 Leadership model and favorable model
5.2 Challenges of leadership model
5.3 Favorable GVC governance for the company.
This paper focuses on different factors related to innovation and its usages and effectiveness in modern businesses. Most of the questions are concerned with innovation in business and economics and the benefits from it. The answers will be evaluated on the basis of their completeness, adherence and analysis.
2.0 QUESTION 1
2.1 Innovation Vs invention
According to Surbhi (2017), the term “Innovation” is defined as the creation of something new including a product, service, technology or any other thing. On the other hand, the term “invention” is referred to the creation of something new for the first time (Surbhi, 2017). The key differences are given below:
|Main theme||Develop a new product.||Creating additional value with existing products (Surbhi, 2017).|
|Concept||It is an original concept||It is implementing the new ideas in practically|
|Skills||Need scientific skills||Need marketing and technical along with strategic skills|
|Concerned with||Single product or process.||Combined products or processes|
|Scope||Research and development department (Surbhi, 2017).||All over the organization|
2.2 Different innovations in economics and business studies
In the case of economics perspective, innovation is required for every economic function. The innovation has a strong positive impact on the development of economical condition of a developing country. Francesca Cassidy (2018) stated that the innovation of new things is needed in several economical activities including manufacturing, construction, goods & services, transport, storage and communications. For example, the innovation of modern technologies helps economic sectors to run manufacturing, transport, and storage and communication system smoothly.
According to Francesca Cassidy (2018), In the case of business innovation, business organizations are used several types of innovations to develop new processes, services, or products. The production innovation helps business companies to produce new products with good quality and better productivity. The marketing technology helps to develop a new marketing strategy and the information technology helps the business firms to store and analyze the business data effectively with a good communication system (Francesca Cassidy, 2018).
2.3 Innovational and formal mathematical models
It is true that innovation can be described in formal mathematical models as a linear process. This concept is true and this can be understood through understanding the main properties of the innovation process.
Pyke (2015) stated that Innovation is important in every aspect of economic and social sections to produce renewal products, services, and markets; develop the method of production and establish a better and new system of management. Denis Solovev (2019) stated that The main objective of innovation is using fewer resources to produce optimum outcomes that are also revealed by a mathematical model like a linear process. According to Rutherford (2014), the Mathematical model is concerned with the mathematical concepts and language to identify the relationship variables mathematically. The forms of mathematical models include dynamical systems, statistical and linear models, equations and game theory.
Bender (2017) noted that Mathematical modeling of innovation has several benefits in the field of economics and business. Firstly, innovation ensures the cost-effectiveness of the mathematical problem by proper use of resources and ensures the proper management of investments. The innovation and formal mathematical models help to implement high-risk innovations through forecasting advanced results of R&D mathematically (Denis Solovev, 2019). The formal mathematical problems are solved by using various types of hardware, software and information technology that are used in the innovation process.
3.0 QUESTION 2
3.1 Technological capability, social capability and Systemic innovation
Denis (2013) stated that Technological capability indicates the capability by which a firm can improve its strength in the technological sector and this firm can gain a competitive advantage from the market through using this technological strength. It is true that the more the technological capability of a firm, the stronger position of that firm in the competitive market. On the contrary, Social capability is determined on the basis of the average education level and technical capacity of a country (Denis, 2013). In addition, this capability is connected with people’s emotions, feelings and experiences, social management and awareness.
Beacon (2016) stated that the innovation is termed systematic because a systematic application of the scientific method is followed to find creative and innovative ideas. The functions of innovation are more systematic because the variables in innovation function are closely interrelated. Innovative functions are concerned in the field of technical, managerial and institutional. All sectors require a systematic process to innovate new ideas or processes.
The development of technological capabilities should not be thought of as the ability to undertake leading-edge innovation, though innovative capabilities are an important element of technological capabilities. Denis (2013) stated that Technological capabilities comprise a much broader range of effort that every enterprise must itself undertake in order to absorb and build upon the knowledge that has to be utilized in production. This involves buying some skills and information from the market and providing others in-house, the choice depending on the technology, market conditions and firm strategies………………………..