Innovation: Survival of the Fittest

Innovation: Survival of the Fittest

"IN ECOLOGY, those species that are not tough enough are often left behind while those who are fit and are able to adapt to drastic changes in the ecosystem survive."

This statement is also true in the world of business. If the business corporations did not follow the demand of the consumer, they will end up with nothing. It is because consumers' tastes and preferences changes from time to time and these are just some factors needed to be addressed to the business firms to improve their goods and services.

Innovation economics or economics of innovation is a growing economic doctrine that reformulates conventional economics theory so that knowledge, technology, entrepreneurship, and innovation are positioned at the center of the model rather than seen as independent forces that are largely unaffected by policy. Innovation economics is based on two fundamental tenets: that the central goal of economic policy should be to spur higher productivity through greater innovation, and that markets relying on input resources and price signals alone will not always be as effective in spurring higher productivity, and thereby economic growth.

Innovation starts when a new knowledge in put to work to production process. - for example, if an establishment of a certain product discovers a better or more effective process of producing their product and it is accepted by markets, societies and governments, then, it is called innovation.

Establishments will be considered as an innovation-active if its product innovator introduced new and effective ways to improve products and services. Large establishments are more likely to innovate than smaller ones because firm size is also a significant determinant of innovation.

Innovations are important for businesses because it adds value to existing resources and it can make firms more competitive. It is very important to introduce innovations in products, firms, markets, technology, sources of raw materials and industrial organization because markets have become global. It can raise our global standing in terms of index of doing business and the competitiveness index.

Businesses are not only supposed of producing the lowest possible cost but they also have to sustain production despite of changes in the business and its environment.

Despite all of the above benefits of Innovation, there are some establishments that dislike new trends.

Knowledge factors and market factors are the major reasons that hampering innovation in the businesses in our country. It is in need to further strengthen the policy framework for innovation and aggressively pursue the country's strategy for innovation.

The national and local government units and the business sector must work