Content

Introduction…………………………………………………………………………………3

Chapter 1. Innovation………………………………………………………………………5

1.1 The Definition of the Innovation……………………………………………………….5

1.2 The Learning of Innovation…………………………………………………………….6

1.3 Discovery, Invention, Innovation and Creativity………………………………………8

1.4 Technological Vs. Venture Model Innovation………………………………………..10

1.5 Creativity……………………………………………………………………………...11

1.6 Invention………………………………………………………………………………11

Chapter 2. The Categories of Innovation………………………………………………….13

2.1 Incremental Innovation………………………………………………………………..13

2.2 The Continuous Improvement Trend as a Result of the Continuous Innovation……..15

2.3 Understanding Breakthrough Innovation……………………………………………..17

Chapter 3. Innovate or Die………………………………………………………………...18

Chapter 4. The Meaning of Entrepreneurship…………………………………………….22

Chapter 5. The Difference between Entrepreneurs and Innovators……………………….24

Chapter 6. The Link between Innovation and Entrepreneurship………………………….28

Chapter 7. The Importance of Innovation and Entrepreneurship…………………………31

Conclusions………………………………………………………………………………..33

Bibliography………………………………………………………………………………34

Introduction

“If innovation is the creation of new capacities for wealth creation, entrepreneurship is the exploitation of these capacities.”

Delia Smith of Greenfield Ventures

In recent years a language has emerged that carries with it a great deal of hope and optimism. Enterprise, entrepreneurship and innovation are just three of the terms that are used, often interchangeably, but with very little understanding and clarity. Whether or not this language has at its core the processes that will lead to the salvation of businesses and organizations, what is guaranteed is that progress will not be achieved unless there is greater clarity in this area. Entrepreneurship is often viewed as a small business/new venture phenomenon, but increasingly it is being applied in the corporate sector. Innovation is another well-used term that unfortunately has a number of meanings attached.

The aim of this research paper is to explore the topics of entrepreneurship and innovation, particularly from the perspective of the larger organization, with a view to bringing some clarity to usage of the terms. It is important that this clarity exists as language is at the core of individual, business, and organizational performance and success. The current confusion and uncertainty leads to lower levels of competitive output.

The object of the study- innovation and entrepreneurship as an important component of effective activities of firms and organizations.

The subject of this investigation-processes and methods by which is given full characteristic of innovations, their influence on company’s effective operation.

To achieve this goal we have set a number of the following tasks:

• revisiting the definitions of such key words as innovation, entrepreneurship,

discovery, invention and creativity, describing their different needs, intents and purposes;

• investigate the difference between innovation and entrepreneurship;

• study a variety of innovation categories (incremental, breakthrough and continuous innovation);

• analyze the connection and the importance of such things as entrepreneurship and innovation.

The relevance of this work. Small businesses are an integral part of modern market economic system. It is present in almost all sectors of the economy and tends to increase. Analysis of foreign and domestic experience in small business development indicates its available different features: a more rapid adaptation to local economic conditions, flexibility and efficiency in making and implementing decisions, the opportunity for the individual to realize their ideas, identify their skills, the ability to quickly enter changes production and manufacture in accordance with changes in market demand. All this contributes to the implementation of an innovative model of structural adjustment and development of MP. Such transformations due to overall socio-economic course of reform of the state to establish a full market economy with a developed private sector. This innovative way of development companies is able to establish them as high-tech and competitive structure of the market.

Accordingly, the current study is to improve the effectiveness of small business by enhancing innovation of small venture.

Chapter1. Innovation

The word itself gets used all the time in the news, in press releases made by governments and universities and in company boardrooms around the world – innovation, innovation, innovation! Not surprisingly, it can bring to mind a variety of meanings depending on the context. Although often associated with discoveries carried out by white-haired scientist-types in high tech industry labs or universities, innovation shouldn't imply only carrying out research and development. Nor is it usually the responsibility of only a small group within of a successful company. Rather, innovation has a much broader definition and considerably wider functions, and should touch all of us every day. It's important to understand that definition and how the concept is different from the concepts of discovery, invention and creativity. Let's start by taking a look at how all of these fit together.