ENTREPRENEURSHIP & INNOVATION IN ORGANISATIONS Assignment

ENTREPRENEURSHIP & INNOVATION IN ORGANISATIONS - Assignment Example 88). Innovation introduces a change, a new combination from what is familiar. Schumpeter, a pioneer in the study of innovation and entrepreneurship, posits that the main force that brings about this structural change is the â€Å"perennial gale of creative destruction† (Schumpeter, 1942). Thinking out of the box seems to be one valuable trait of innovators and entrepreneurs. Although related, the processes of innovation and entrepreneurship are different. Innovation is sparked by a new idea. The idea can be a new technology such as a gadget that can provide more convenience to consumers, a new service like an alternative form of relaxation, a new product, or even a new administrative procedure. Such ideas are driven by needs that are seen by the innovators. Innovation requires creativity. Engle, Mah & Sadri (1997) define Creativity as the ability to develop ideas through one of three processes. One is creation or the development of something new. Another is the synthesis or combination of concepts. The third process is modification or the changing or improvement of things (Anderson, 1992). Indulging in such processes makes the entrepreneur a creative thinker who modifies or rejects previously accepted ideas to build innovations from practically anything. In organizations, innovation becomes the growth of a new idea from its initial state into its actualized form as a full-blown innovation (Roberts, 2006). Schumpeter (1939) mentions various types of innovations: the introduction of new products, new methods of production and new forms of business organization as well as the penetration of new input—and output markets. The people who drive and protect the innovative ideas are the entrepreneurs. They are responsible in designing and developing a programme of activities that push the innovative idea forward.