Page 21 - Gričar, Sergej, Barbara Rodica and Štefan Bojnec, 2016. Sandwich Management. Koper: University of Primorska Press
P. 21
Inovation in SME 21
to change is the degree of novelty involved. The degrees from novelty are
running from minor, incremental improvements right through to radical
changes which transform the way we think about and use them. Although
innovation sometimes involves a discontinuous shift – something com-
pletely new or a response to dramatically changed conditions, innovation
is rarely new on the global market. Innovations are in the most of times in-
cremental.
Schumpeter (1934) defined innovation as the introduction of new el-
ements or a new combination of elements in the production or delivery of
manufactured and service products. His concept of innovation embraces
different areas of innovation activity.
In the last three decades, theoretical approaches to innovation theory
have gradually evolved in the direction of recognising the important role of
services. The third edition of the »Oslo Manual« (OECD 2005) provides
a revised definition of innovation which is better tailored to its role in ser-
vice industries. Specifically, it has been obvious for some time that inno-
vation in services is more geared towards organisational changes than to-
wards the development of new products and processes. The revised Oslo
Manual broadens the definition of innovation to mean the implementa-
tion of a new or significantly improved product (good), or process, a new
marketing method, or a new organisational method in business practices,
workplace organisation or external relations.
Service innovation (coming from either services or manufacturing sec-
tors) can boost entrepreneurial dynamism, by closing the gap between sci-
entific innovation and market requirements, and facilitating a cross-sec-
toral fertilization which ultimately contributes to GDP growth and jobs
(European Commission 2012). As stresed out by Stare (2013) service inno-
vation has a lower R&D intensity in the traditional meaning of the term
for technological innovation. Service innovation is usually less formalised
and rarely carried out in research and development departments; it is incre-
mental rather (progressive, small innovation) than radical (significant) and
consequently less visible.
The importance of the service sector in national economies should not
be overlooked. In terms of employment in the non-financial business sec-
tor, services is the largest sector in the EU28 »Service innovation appears
to be in accordance with Schumpetrian definition of innovation as service
innovations do create new possibilities for further added value, and also
stretch beyond the mere technological product and process innovation«
(Rajkovič 2011, 29).
to change is the degree of novelty involved. The degrees from novelty are
running from minor, incremental improvements right through to radical
changes which transform the way we think about and use them. Although
innovation sometimes involves a discontinuous shift – something com-
pletely new or a response to dramatically changed conditions, innovation
is rarely new on the global market. Innovations are in the most of times in-
cremental.
Schumpeter (1934) defined innovation as the introduction of new el-
ements or a new combination of elements in the production or delivery of
manufactured and service products. His concept of innovation embraces
different areas of innovation activity.
In the last three decades, theoretical approaches to innovation theory
have gradually evolved in the direction of recognising the important role of
services. The third edition of the »Oslo Manual« (OECD 2005) provides
a revised definition of innovation which is better tailored to its role in ser-
vice industries. Specifically, it has been obvious for some time that inno-
vation in services is more geared towards organisational changes than to-
wards the development of new products and processes. The revised Oslo
Manual broadens the definition of innovation to mean the implementa-
tion of a new or significantly improved product (good), or process, a new
marketing method, or a new organisational method in business practices,
workplace organisation or external relations.
Service innovation (coming from either services or manufacturing sec-
tors) can boost entrepreneurial dynamism, by closing the gap between sci-
entific innovation and market requirements, and facilitating a cross-sec-
toral fertilization which ultimately contributes to GDP growth and jobs
(European Commission 2012). As stresed out by Stare (2013) service inno-
vation has a lower R&D intensity in the traditional meaning of the term
for technological innovation. Service innovation is usually less formalised
and rarely carried out in research and development departments; it is incre-
mental rather (progressive, small innovation) than radical (significant) and
consequently less visible.
The importance of the service sector in national economies should not
be overlooked. In terms of employment in the non-financial business sec-
tor, services is the largest sector in the EU28 »Service innovation appears
to be in accordance with Schumpetrian definition of innovation as service
innovations do create new possibilities for further added value, and also
stretch beyond the mere technological product and process innovation«
(Rajkovič 2011, 29).
