Types of innovation
1. Invention which is the creation of a new product, service or process, often one that is novel or untried.
2. Extension which is the expansion of a product, service or process already in existence. It makes a diff application of the current idea.
3. Duplication is the replication of an already existing idea, product or process. The duplication effort, however, is not simply copying but adding one’s own creative touch or improve the concept to beat competition.
4. Synthesis is the combination of existing concepts ; factors into a new formulation. This involves taking a no. of ideas or items already invented ; finding a way so that they together form a new application.
Concept and Models of Innovation
Joseph Schumpeter in his first major book on innovation titled „The Theory of Economic Development in 1911 identifies five types of innovations that define the entrepreneurial act. These are:
I. Product: The introduction of a new good – that is one with which consumers are not yet familiar – or of a new quality of a good.
II. Process: The introduction of a new method of production, that is one not yet tested by experience in the branch of manufacture concerned.
III. Business model: The opening of a new market, that is a market into which the particular branch of manufacture of the country of question has not previously entered, whether or not this market existed before.
IV. Source of supply: The conquest of a new source of supply of raw materials of half manufactured goods, again irrespective of whether this source already exists or it has first to be created.
V. Mergers ; divestments: The carrying out of the new organization of any industry, like the creation of a monopoly position or the breaking up of a monopoly position.