In today’s competitive environment, Innovation is of utmost important to the long-term success and survival of any business. In the absence of new ideas, enterprises finds it difficult to grow and eventually they do a persistent struggle to sustain in the business.

There are several reasons why innovation is critical to your business success. Innovation help you discover what opportunities exist now or will appear in future. It will help you stay ahead of your competitors. Innovation is not only about designing a new product or service but can also be implemented on your existing business practices to improve efficiency, cut down on waste and increase profits. If a company doesn’t adapt to its changing environment by constant reinvention of its products & processes, it will soon be surpassed by its competitors.

Innovation beyond being an engine of profitable growth for companies, it plays a pivotal role in increasing the vitality of an industry and society by creating jobs and raising the standard of living. Indeed, in Accenture’s survey of entrepreneurs across G20 countries, 83% said innovation is vital to grow their business and create jobs.

Innovation ecosystem plays a key role as it supports and helps entrepreneurs to translate their ideas into marketable products and services fostered by business-friendly government policies which brings these innovators profit and success.

‘Open Innovation’, the term coined by Henry Chesbrough in 2003 which means as technology elaborates and develops, companies began involving more parties as part of their innovation efforts and hence, because of technology the whole world is connected. Bridgemakers play a key role in today’s open innovation ecosystem. They help entrepreneurs to convert their idea from concept to reality which brings them profitability. Large companies and Business incubators are the two types of bridgemakers which help entrepreneurs in the above process.

In a broader sense, innovation is important to the advancement of society around the world. New and innovative products can increase the standard of living and provide people with opportunities to improve their lives If you can't compete on price, you'll need innovative products and ideas to make your business stand out from the crowd.

Sources / References :

  • EY Report 2014 on "Avoiding a lost generation: Ten key recommendations to support youth entrepreneurship across the G20"
  • Accenture Report 2014 on "The Promise of Digital Entrepreneurs: Creating 10 million youth jobs in the G20 countries"