Innovation product business plan

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Innovation product business plan

In other words, through innovation an enterprise seeks to deliver unique new value to its customers. Technological innovation may be classified in several ways: In this article, however, the focus is on technological innovations.

But differences of opinion persist amongst economists and policymakers about the exact role of intellectual property IP in relation to innovation.

This article, however, does not deal with these otherwise important aspects.

innovation product business plan

For explaining the role of the tools of the IP system, it goes beyond merely looking at technological innovation as either radical or incremental technological breakthroughs. Instead, it looks upon technological innovation as an interactive process made up of a number of distinct stages.

In other words, it looks at practical IP issues of relevance to different stages in the whole new product development process in which technological innovations may be introduced at different stages of the value chain from the producer to the end user. An IP right is thus a legal right, which is based on the relevant national law encompassing that particular type of intellectual property right.

Such a legal right comes into existence only when the requirements of the relevant IP law are met and, if required, it is granted or registered after following the prescribed procedure under that law. In practically all countries the world over, a national legal system of intellectual property rights have evolved; this has been created over varying periods of time during the last years or so.

It has enabled the grant of property-like rights over such new knowledge and creative expression of mankind, which has made it possible to harness the commercial value of the outputs of human inventiveness and creativity.

This is usually done by its orderly use, exchange or sharing it amongst various types of business partners in a complex network of strategic relationships that generally work harmoniously during the new product development process for creating and marketing new and improved goods and services in domestic and export markets.

The grant of a property right by the government, albeit generally for a limited period of time, over useful intangible intellectual output provides the owner of such legal property rights the right to exclude all others from commercially benefiting from it. In other words, the legal rights prohibit all others from using the underlying IP asset for commercial purposes without the prior consent of the IP right holder.

The different types of IP rights include trade secrets, utility models, patents, trademarks, geographical indications, industrial designs, layout designs of integrated circuits, copyright and related rights, and new varieties of plants.

An invention is considered as the generation of a new idea or knowledge, which aims to solve a specific technical problem. As not all inventions are commercialized, so it is clear that not all inventions result in innovations.

Such an innovation is also described as a radical or disruptive innovation. An improvement innovation also called an incremental, sustaining, sequential or complementary innovation would lead to an improved product over its ancestor in terms of quality, reliability, ease of use, environmental protection, raw material use, labor cost, and so on.

It may also include the application of new and better production processes or techniques that allow old or new products to be made more reliably, of better quality, or simply in larger quantities, or at a lower price.

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An innovative new or improved product that meets customer expectations offers an existing or new business, new market territory without competition for so long as it retains its innovative advantage. The IP system plays a significant role in helping a business to gain and retain its innovation-based advantage.

innovation product business plan

As a consequence, the competitive edge that an entrepreneurial business may gain with a basic or disruptive innovation is likely to be longer lasting than that obtained merely from an improvement innovation, assuming that the technological barriers to competitors taking advantage of similar innovations are approximately equivalent, since a basic innovation establishes a new class of product or service, entry of competition requires that the opportunity provided by that class is recognized by a potential competitor before it attempts to enter the market.

In the case of an improvement innovation, not only are competitors for the class of product already in place, but since the improvement innovation typically amounts to a better, faster, or cheaper way to build the product, its advantages are far more quickly understood and replicated.

A survey of economic studies reveals that patents are the most preferred IP rights in relation to technological innovations.

This may explain why studies on innovation have, in many cases, treated patents as proxy input for innovation. In addition, patents are also used as a measure of output of innovation.

How do you Connect Innovation to Business Strategy?

In this article, however, the focus is limited to all IP related actions that must be taken within an enterprise at different stages of the new product development process or cycle for using the different tools in the IP system for market success. However, for the sake of simplicity, it is assumed in this article that all actions concerning innovation in relation to new product development happen within an enterprise.

An enterprise would be well positioned to benefit from innovation if it takes into consideration from the initial stage of the new product development process the full range of IP issues. This is true whether the decision to innovate is taken as part and parcel of the overall business strategy, one-off development of a new idea, or as a reaction to developments in the marketplace.

IP plays an important role in facilitating the process of taking innovative technology to the market place. At the same time, IP plays a major role in enhancing competitiveness of technology-based enterprises, whether such enterprises are commercializing new or improved products or providing service on the basis of a new or improved technology.

For most technology-based enterprises, a successful invention results in a more efficient way of doing things or in a new commercially viable product.

The improved profitability of the enterprise is the outcome of added value that underpins a bigger stream of revenue or higher productivity. It should be noted that not all commercially viable ideas can be or will be patented 10hence the importance of treating ideas as trade secret, in particular at the inception stage.

Empirical evidence indicates that generally small and medium-sized enterprises SMEs are more inclined to use trade secrets rather than patents as a form of protecting their inventions to stay competitive.

It also showed that size was an important factor in determining the propensity to patent, i. At that stage, the choice would depend on the nature of the invention, its business potential, the nature of competition, the possibility of its independent creation by competitors and the ability of competitors to reverse engineer it easily from the product developed by using it.

It should, however, be pointed out that whatever the ultimate decision, initially it must be protected as a trade secret so that, later on a part of it may be patented and the rest of it may still remain as the associated trade secret and know-how, or tacit knowledge owned by individuals that are associated with the patent.The upside risk in innovation is of course the benefits to a business when innovation leads to a more desirable offering: better product, suitable for a larger market, differentiated from competition, easier to build, and so forth.

ChemSafe cleaning products business plan executive summary. ChemSafe manufactures and distributes an innovative line of biodegradable, environmentally safe, citrus based cleaners to janitorial services, wholesalers and retail outlets.4/5(16).

Innovation. Generally put, an ‘innovation’ is developing a new idea and putting it into practice. As this article is focused on the competitive strategy of a private enterprise in a market-driven business environment, the term ‘innovation’ is used here to refer to the process of bringing valuable new products (goods and services) to market i.e., from the idea/concept formulation stage.

Business Plan Center Building an innovation strategy Keep your brand relevant by creating an innovation strategy that can lay the groundwork for successful product or service reinventions. The Department for Business, Innovation and Skills (BIS) was a ministerial department of the United Kingdom Government created on 5 June by the merger of the Department for Innovation, Universities and Skills (DIUS) and the Department for Business, Enterprise and Regulatory Reform (BERR).

It was disbanded on the creation of the Department for Business, Energy and Industrial . Initially, a disruptive innovation is formed in a niche market that may appear unattractive or inconsequential to industry incumbents, but eventually the .

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