We find different definitions of what Innovation is, to highlight is the one contained in the Oslo Manual, a publication of the OECD (Organization for Economic Cooperation and Development) prepared with Eurostat, which is entitled “Measurement of Scientific and Technological. Offered guidelines for gather and interpreting data on technological innovation: The Oslo Manual ”.
TWO TYPES OF INNOVATION EMERGE FROM THIS DEFINITION:
Radical Innovation: something new in the product or in the process.
Incremental Innovation: attending to improvements.
THE MANUAL ITSELF DEFINES DIFFERENT INNOVATIVE ACTIVITIES, AS LONG AS THEY ARE INTRODUCED IN THE COMPANY ITSELF:
Likewise, the definition itself encompasses companies that define their own innovation project to develop something new, such as those that introduce continuous improvement methods in their products or organizations.
The Frascati manual defines innovation as: “the creation and modification of a product and its introduction into the market, defining innovation as the transformation of an idea into a salable product, new or improved, in an operational process in industry and commerce or in a new method of social service. ”
THIS MANUAL IDENTIFIES THREE AREAS WITHIN RESEARCH AND DEVELOPMENT:
Basic research: Basic work that is undertaken to acquire new knowledge about the fundamentals of phenomena and observable facts, without this necessarily having yet an application or use as an objective.
Applied research: Original work is done to acquire new knowledge. However, this activity is primarily directed towards a specific practical goal.
Experimental Development: Works that take advantage of existing knowledge obtained from research and practical experience, and is aimed at the production of new materials, products, or devices, that is, at the start-up of new processes, systems, and services, or to the substantial improvement of the existing ones.
INNOVATION GOES FURTHER
We must consider innovation as a key factor in business strategy that will determine a competitiveness factor that is linked to the very survival of companies. Today it is a concept that is not fully assumed by a large group of companies that frame it in the plans of large companies, international plans, and that in one way or another affects the evolution and transformation of the business itself.
The concept itself implies that innovating is not always creating something new, therefore, implementing, developing something that has already been created, highlighting certain functions, working on certain plans, and any other development determined by the pure observation of something already created, all this can determine an innovation.
Another common aspect of the concept of innovation is to relate it in research environments, for example, in universities, technology centers, R&D departments, etc., with companies merely applying those previously researched results. But it goes further, in short, the benefit that we are going to obtain in our company from this observation of a certain aspect, will be the same as that of the innovation itself as it is usually understood.
SOURCES OF INNOVATION
1. Adapt processes
2. Adapt regulations
1. Request clients
2. Request suppliers
1. Request departments
2. Have your own ideas
UNCERTAINTY IN INNOVATION
The main objective of innovation, in the end, is to create a competitive advantage, that differentiation that enables companies to occupy an advantage over their competitors in a global market, in short, it implies the possibility of incorporating a product or service in a market and having success, although it must be taken into account that it can also fail, and all the investment that has been made within the innovation process can involve a high cost that is sometimes difficult to bear, in all this process the uncertainty is inherent to the innovation.
The achievement of that value that we can reach with the implementation of an innovation, and the ignorance of the immediate future and knowing how a certain market will behave.
IT IS DETERMINED BY A SERIES OF FACTORS, WHICH IN HARRI JALONEN’S OPINION COULD BE INCLUDED IN EIGHT:
- Technological uncertainty
- Market uncertainty
- Institutional uncertainty
- Political-social uncertainty
- Uncertainty in adaptation or legitimacy
- Managerial uncertainty
- Temporal uncertainty
- Uncertainty about the results / Consequences of innovation
The R&D department will have to incorporate a broad knowledge of all these factors, trying to anticipate problems that may arise in order to minimize possible problems in the short or medium term, and at the same time try to convert possible areas of uncertainty into opportunities.