Industry gets religion
Article Abstract:
Innovation is seen as a key to business success in terms of market share and profit. It is difficult to define and measure innovation. It can involve using new materials or marketing or distributing existing products in a better way, and does not have to involve creating new processes and products. Innovations can boost returns. They include the McDonald hamburger sandwich and the Betamax video recorder. Innovations vary according to risk, and the riskiest types involve science-based discoveries, which tend to attract more attention than capitalising on products that are unexpectedly successful, a less risky move.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Leaps of faith
Article Abstract:
Innovations tend to be carried out in large firms where it may not be easy to obtain approval from headquarters, though funding for developing innovations may be less of a problem. Disruptive innovations may appeal to niche consumers, and the market may grow to the extent that the new product is more popular than the traditional alternative. Personal computers are an example of a disruptive innovation. There are five steps that can be identified for successful innovations, from imagining through to sustaining the innovation in the market.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Silicon envy
Article Abstract:
Silicon Valley accounts for a third of venture capital raised world wide and jobs in Silicon Valley tend to pay one-and-a-half times the average for the US. Stanford Industrial Park is a key factor in Silicon Valley's success. Cambridge University in England has also been successful in launching high-tech companies. Silicon Valley benefits from a culture where risk is accepted and rewarded, while failure is not punished. Israel, where networking is important, has also been successful in terms of innovations.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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