Invention vs Innovation
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Invention involves creating something entirely new, such as the first light bulb or telephone.
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Innovation, on the other hand, is finding a new application or improvement for an existing creation.
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Invention - Formulation of new ideas for products or processes
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Innovation - Practical application of new inventions into marketable products or services
Main types of innovation
- Product innovation
- Launching new or improved products
- Process innovation
- Finding better or more efficient ways to produce existing products or delivering existing services
Product innovation
- Advantages
- First mover advantage can mean:
- Higher prices and profitability
- Added value
- Opportunity to build early customer loyalty
- Enhanced reputation as an innovative company
- PR coverage
- Increased market share
- First mover advantage can mean:
Process innovation
- Advantages
- Reduced costs
- Improved quality
- More responsive customer service
- Greater flexibility
- Higher profits
Entrepreneurship vs Intrapreneurship
Entrepreneurship
- Entrepreneurial activity by entrepreneur
- Rewards go to entrepreneur
- Risk taken by entrepreneur
Intrapreneurship
- Entrepreneurial activities taken by employees and managers
- Rewards (mostly) go to the company
- Risk taken by company
Ways to encourage and facilitate intrapreneurship
- Structured time away from work to allow employees & managers to develop business ideas
- Build cross-functional teams to lead innovation projects
- Secondment of staff to smaller businesses or startups
- Staff competitions and innovation days (such as hackathons)
Why protect Intellectual Property
- Keep control of intellectual property
- Maintain unique selling point
- Maximise return on investment
- Reduce threat of competition
Patents
- To be patent protected, the invention must be:
- New
- An innovative step (not obvious to others with knowledge of the subject)
- Capable of industrial application (can be made and used)
- Not be excluded (certain inventions don’t count, such as scientific theories and artistic creations)
Copyright
- Important protection for many industries including media, design and publishing
- Protection is automatic for any original work
- Lasts for 70 years after authors death
- Can control how copyrighted work is exploited (eg, license, royalties)
- Widely used as a way of protecting creative work of all kinds