The Connection Between Entrepreneurship & Innovation
It is meaningful to identify and link a connect between entrepreneurship and innovation. Both are critical drivers responsible for the growth of an economy. Entrepreneurship connects the economic process and its fruits in the form of new firm creation. On the other hand, innovation has its deep embedded roots in creativity, thereby leading to patents, Research & Development and also creation of technology intensive firms, where a lot of economic activity is centred. This connect is both at the personal level i.e. entrepreneur and the corporate level i.e. intrapreneur, engaged in combining efforts with the deployment of optimum resources and capabilities in capturing value. What do we get?
A spring of new ideas, innovative in context, be it in the form of product, or services or even processes. They be incremental in nature or even radical, which we term as disruptive. Deeper the connect between the two i.e. entrepreneurship and innovation the more integrated they become responsible for enhanced prosperity of any economy.
Let us accept that the most powerful of the global economy is the United States of America, commonly referred as USA. It is powerfully constructed with a web of changing technology, global market access and innovation diffusion. Innovation becomes the drivers of the new strategic growth and sets forward new dimensions of businesses. The markets as of now have become highly competitive, thus the creation of economic value can only be sustained as firms, large and small, young and old, increase their capacity to generate new marketable ideas, rapidly commercialize those ideas. They must regulate their competitive contribution to altering market conditions. This entrepreneurial spirit, whether pragmatic in the creation of new or the growth of conventional firms, keeps the industries pulsating and maintains the health and affluence of regions.
Those investing heavily in innovation have discovered that the entrepreneurship as the primary mechanism for the fusion of innovation into practicable domain. Therefore, it becomes paramount to foster the growth of nation, wherein innovation and entrepreneurship be encouraged in a common platform.
Firms, those have become early adopters, are still engaged in the existence by relocation in friendly environment. What is important is to focus the efforts in sustaining in these turbulent environments (VUCA) by the spirit and capacity to innovate consistently. This may be an early stage of the entrepreneurial process but may set a milestone for the creation additional wealth. Commercialisation comes next.
If innovation is carried in seclusion to the act of entrepreneurship, it might restrict any major economic impact. We must caress the core of the entrepreneurial spirit that makes a way to the innovations contributed. Together, they stimulate the economic growth, whether its locally or regionally. Entrepreneurs, hence are engaged in truly capturing value with a customer’s delight. They become engines of growth and vital to becoming competitiveness of the region.
The role of entrepreneurship in innovation driven economies is quite clear. Higher the rates of innovation, higher the rates of entrepreneurial births taking place for absorption and diffusion of the new technologies. The link between the entrepreneurship and innovation is visible. Few questions that ponder about in deciphering the rate of innovation and entrepreneurial economies, whether they are local, regional, national or global are as follows.
Birth of new firms varies regionally. The higher the proclivity to entrepreneurship, the potential of the region to be more economically sound becomes more predominant. Government’s intervention cannot be ignored. At the same time, individuals and clusters becomes as torch bearers. With advancing economies, there level of innovation also increases and hence their economic development. They land in producing technology intensive firms that produce sustained incomes and generate an everlasting economic value. This combination becomes stealth and is responsible for a sustained economic development and growth of the incumbent region, shielding as a competitive advantage.
Thus, it is evident that entrepreneurship emanates as a significant driver for economic growth and that the innovation assists in turbulent (VUCA) times. They are strongly correlated and we can witness that regions embracing entrepreneurship have higher economic prosperity. Innovation has long been the driver to economic prosperity and with added uncertainties like Covid-19 pandemic, has emerged as the centre for all activities. We must, therefore, establish an innovation environment and cash upon to gain in the long-term perspective. On the other hand, Entrepreneurship efficiently connects innovation and the regional economic growth.
Therefore, it becomes important to respond to what makes a region entrepreneurial?
Research findings elaborate much on the developmental resources that unleash entrepreneurship character more significantly towards greater economic growth. The regions that are entrepreneurial by nature tend to acquire greater levels of expenditures in Research and development. This leads to a significant impact by the industry structure, the competitive dynamics, technology orientation, etc. in the creation of newer enterprise. The industries connected with these economies embracing high level of entrepreneurship activities, are directly dependent on technologies to drive productivity. They also encourage service driven mechanisms for sustained growth as apart of entrepreneurial activity.
Thus, in brief, we can see the enormous benefits, which can be unleashed with the connection of entrepreneurship and innovation. They have a common platform and with a proper support of the environment from where they operate upon, jointly can create enhanced growth.
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