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What is Innovation definition/concept

Innovation means the phenomenon in which a given technical change achieves significant changes in both the economic and social areas . From this statement it can be deduced that it is not any technological variation that can reach innovation, unless it presents the best solution to pre-existing social needs. The most recognized theorist dealing with this topic is Joseph Alois Schumpeter.

Shumpeter defines the concept by mentioning a new mode of production that makes the factors involved combine in a new way with a profound impact on the economy and society , destroying previous relationships and giving way to a new order; that is why for Shumpeter, the fundamental characteristic of capitalism is creative destruction, the constant change that continually leaves structures behind to make way for others. Innovation

This process is accompanied by the acquisition of a temporary monopoly position by the economic agent who caused the change; in fact, when talking about a new way to combine the factors of production, only the agent can enjoy, at least until this knowledge becomes public, but this temporary advantage will have a significant share market with great results. From this perspective, Shumpeter’s departure from the neoclassical view, which emphasizes perfect competition to explain capitalism, is evident . In this case, capitalism would be a process of seeking continuous innovation to reach a preponderant (monopoly) position in the market.

Some clarifying examples to refer to innovation may be the following: the press, which made it possible for the general public to access information contained in codices; the railroad, which made it possible to approximate distances, facilitating the movement of goods and raw materials; the telegraph, with its remote communication possibilities ; and the combustion engine, aimed at the development of means of transport. Innovation

Currently, the described process becomes notorious when we observe the solutions that arise in the face of problems that previously seemed impossible to solve. Considering, for example, the oil shortage feared a decade ago; today, in addition to the emergence and improvement of new ways of obtaining energy , we can count on the extraction of unconventional oil, as well as on the news of artificial production. Not surprisingly, the future is faced with more surprises.

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