Member-only story
Management Fix
Innovation is defined as the carrying out of new combinations that include the introduction of new goods, new methods of production, the opening of new markets, the conquest of new sources of supply, and the carrying out of a new organization of any industry. (1) Innovation investment is a must-have on every institution/company budget.
Studies show a solid link between investment in innovation and profitability and growth. Add to that the battle to survive in an intensely competitive global market and the decision to invest become, in today’s jargon, a ‘no-brainer.’ (2)
When companies decide to spend on innovation, the investment is more than spending money on R & R&D. The investment will also range from developing new products or processes and other tangible and intangible assets. Companies invest in innovation to gain market share, reduce costs, or, more generally, to become more productive. For many firms, innovation is essential, as consumer demand has become more sophisticated and competition has increased. (3)
When firms invest in innovation, it’s to grow. However, there are more benefits associated with innovation. Let’s see some important reasons why you should invest in innovation:
- it will bring new business potential energy into your company.
- it will enable more growth
- it will make your company more efficient
- it will help you in creating an…