From the perspective of a firm, it is the application of new methods or the introduction of new ideas that act as an added value for the product, and raise its worth, in terms of its value for the firm, the consumers, and other firms as well. Innovation is categorized into two broad terms by economists: Product innovation is with regards to the introduction of a completely new product or an amendment in an existing product that results in a qualitative change or improve its range; Process innovation pertains to the development and implementation of new and effective processes of delivering goods to the customers and in the provision of services of a firm, an example of this could be the replacement of an old software by a newer, more efficient software that speeds up the process of an Apple Mac. A few authors also reflect on the third category of innovation, which they refer to as Organizational Innovation which as the name itself suggests is about organizational changes that increase the effectiveness of a business and adds overall value to it. However, if considered on a wider horizon, it can be classified under product innovation itself, since it is basically a procedural change taking effect within an organization. Furthermore, product innovation can comprise of both tangible goods and intangible services; these can have a great impact on the day to day lives of the people. .
Please type your essay title, choose your document type, enter your email and we send you essay samples