Are entrepreneurs innovators or inventors? | Isabel dos Santos explains
Many people use the words ‘innovation’ and ‘invention’ interchangeably. But there are very distinct differences between them. And it is crucial that we understand them, particularly when we apply these terms to entrepreneurs. So, are entrepreneurs ‘innovators’ or ‘inventors’?
What is the difference between innovators and inventors?
In order to explore that, it’s worth just defining the terms ‘innovator’ and ‘inventor’ first. There’s a great explanation of the difference between innovators and inventors here. Tom Grasty, a contributor to the Huffington Post and founder of tech start up Stroome, says:
“In its purest sense, invention can be defined as the creation of a product or introduction of a process for the first time. Innovation, on the other hand, occurs if someone improves on or makes a significant contribution to an existing product, process or service.”
I think Tom has it exactly right here. Think of possibly the most visible innovation in our lives at the moment — the smartphone. As the leader of the Angola mobile phone company Unitel, part of my own success in business has been built on this single innovation. And it will play a central role in the future economic success of Africa too.
It dominates every aspect of our lives and it has transformed the way that we communicate. But compare it to the invention that it is based on and the difference between invention and innovation becomes clear.
Alexander Graham Bell invented the telephone in the late 1870s. And the smartphone you use now is a relatively recent innovation on his invention. It is a dramatic improvement on Bell’s idea, one born out of a very different creative process to the one that Bell went through.
To create the smartphone, the innovators at companies like Apple took Bell’s idea and other inventions, like the microprocessor. Then they looked at new ways of combining them all in different ways. Their vision was to reshape it for modern users. Compare this to Bell, who invented something completely new — a technology that simply didn’t exist before.
At this point, it is probably useful to define the word ‘entrepreneur’, too. It’s something that many people identify themselves as. But again, it is a term that often misused.
Are entrepreneurs innovators or inventors?
The experts at QuickMBA define an entrepreneur in the following way. It is a business person who:
· Generally, creates more wealth than normal business owners
· Does this more rapidly than other business people
· Is happy to pursue high risk opportunities, for high returns
· Innovates, and creates a competitive advantage
So, the question remains, are entrepreneurs inventors or innovators? Well, for me it is clear that most entrepreneurs are innovators, who take existing inventions and improve on them.
Someone like Thomas Edison fits this description perfectly. He was an inventor, certainly, who created inventions like the light bulb that have transformed the world.
But he was also an innovator. He once said: “My business consists of giving commercial value to the brilliant, but misdirected, ideas of others… Accordingly, I never pick up an item without thinking of how I might improve it.”
Taking a fresh look at old challenges
What sets entrepreneurs apart is their desire to look afresh at existing challenges. As I’ve suggested above, they’re also usually ready to take bigger risks in order to come up with imaginative solutions to those problems.
A classic example of this kind of entrepreneurial thinking is that of Ted Sarandos, Chief Content Officer for Netflix. Industry experts warned him against the idea of making every episode of a new series available at the same time. And yet the success of series like House of Cards proved that this innovative thinking was risky, but hugely profitable.
Ted Sarandos didn’t invent television, or even video streaming. But he did innovate a new way to deliver the service and imagine a fresh solution for his customers.
For me, what sets these people apart from ordinary business people is imagination. To use an example from a different field, think about the best chefs, who try different, unusual flavour combinations together, to see what happens.
Again, a world-class chef like Heston Blumenthal didn’t ‘invent’ white chocolate, or caviar. But he did have the nerve to risk combining them, with spectacular results. This kind of risk adds to his reputation in the industry and builds his brand image as an innovator.
Entrepreneurship is about having a willingness to innovate and take risks to come up with new solutions to old problems. And once they’ve done this, the best entrepreneurs quickly market it and make it successful.
It requires bravery, and a willingness to just go for it. But being an entrepreneur is also all about looking at the way things are and wanting to improve them. And that is one of the greatest contributions that entrepreneurs can make to society.
To hear more of Isabel’s thoughts on entrepreneurship and innovation, visit her YouTube channel here.
