What is innovation? Examples, types of innovations

Innovation is a key factor in the economic development of modern states. Their development and implementation require significant resources – labor, financial, organizational, but the solution of the corresponding tasks is necessary in order to ensure the efficiency of the country’s economy. What are innovations? What are the conditions for their successful implementation?

Innovation example

The essence of innovation
It is customary to understand innovation as some innovation in the field of technological developments, the implementation of management decisions, the organization of business processes, which is based on the use of advanced achievements in various fields of science. Examples of innovations can be observed, therefore, in a wide variety of economic sectors. An important criterion for recognizing a solution as innovative is a fundamental improvement of a particular technological or managerial process during its implementation.

Classification of innovations
The respective type of innovation can be represented in different categories. So, the classification of innovations is widespread based on:

– the degree of novelty;

– the object of application;

– potential scale of implementation;

– factors that led to the development of a specific solution.

Let’s study them in more detail.

Examples of innovations

Classification of innovations by novelty
Let us consider, for example, the specifics of the criteria reflecting the degree of novelty. They are divided into:

– radical;

– optimizing;

– modifying.

Innovations of the first type involve the introduction of the results of fundamentally new, advanced developments that can affect the economy on the scale of the infrastructure of entire industries, spheres of science and technology. What radical innovations have recently been introduced into the world socio-economic processes? Examples of developments of this type are mobile Internet, 3D printing, or, for example, the introduction of cryptocurrencies as an alternative to traditional money.

All the technologies noted have influenced the global socio-economic processes, and this impact has a huge potential for further growth. At the same time, the development of relevant innovations can be expressed not only in quantitative indicators, for example, in the form of the coverage area of ​​the mobile Internet or the introduction of 3D printing in new industries, but also in qualitative ones. For example, in the form of increasing the speed of uploading and downloading files from devices, upgrading 3D printers in order to print technologically complex parts and devices with their help.

There are optimizing innovations. They are sometimes called enhancers. Their essence is in the implementation of solutions capable of providing local optimization of certain technical or managerial processes. What are the most notable enhancing innovations? Examples of such innovations can also be considered in different areas. In principle, they can be traced within the framework of the technologies noted above, that is, in the field of mobile solutions, in the field of 3D printing, in the segment of financial services.

Innovation in Russia examples

If we talk about mobile technologies, then one of the improving innovations that relate to this area is the invention of multi-touch touch screens that can recognize multiple simultaneous finger taps on the display of a smartphone or tablet. Of course, today this function will not surprise the owner of a mobile gadget, but the first screens of the corresponding type of device did not support “multitouch”. There is also a large number of enhancing innovations in the field of 3D printing. Examples of these are the adaptation of 3D printers to new types of materials. So, if the first devices for three-dimensional printing could use mainly special types of plastic, then modern modifications of 3D printers can, for example, cast metal products, print them from nylon, photopolymers.

There are so-called modification innovations. Their essence is to improve performance, consumer characteristics, and the effectiveness of existing solutions. What are some notable modern modification innovations? An example of a suitable solution is the invention of a new technical process for the release of computer processors.

Innovation-enhancing examples

Several years ago, chips produced with a technical process of the order of 80-90 nm were considered advanced. Today, the desired indicator that allows ensuring the optimal performance of the microcircuit is no more than 30-40 nm. At the same time, modern models of processors on a PC operate on a technical process of the order of 14 nm.

Classification of innovations: object of application
The next criterion for classifying innovations is the object of application. So, according to it, researchers distinguish innovations: infrastructural, technological, process, and also complex. What is their specificity?

Infrastructural innovations include innovations related to the production of goods and services using fixed assets of industrial enterprises. What kind of innovation could it be? An example of such innovations is the introduction of robotic factory lines. Alternatively, they can be used at machine-building and instrument-making enterprises.

There are technological innovations – they are aimed at introducing new approaches to the production of goods and the provision of services. As a rule, their implementation involves the use of fundamentally different technical solutions. What kind of innovation could it be? An example of such is the use of mobile payment terminals for plastic cards. Their implementation allows you to accept payments from customers in almost any place where there is a mobile Internet coverage area, as a result of which the turnover of an enterprise selling goods or services can significantly increase.

There are process innovations. They presuppose the establishment of certain organizational structures in the company, allowing to implement fundamentally new management decisions. What kind of innovation could this be? An example of such is the introduction of a KPI system, that is, key performance indicators of the organization’s employees.

Classification of innovation: scope
Another criterion for classifying innovations is the scope of application. It presupposes the division of innovations into intracorporate, intra-industry, and also inter-industry.

Innovations of the first type involve implementation at the level of a specific enterprise. They are often trade secrets, so their distribution outside the firm may be limited. The innovations of the corresponding type can be very different. For example – associated with the production and use of fundamentally new substances, mechanisms, programs in production processes – which can significantly increase the efficiency of the company.

Intra-industry innovations are innovations employed by several enterprises operating in the same sector of the economy. For example, the robotization of factory lines, which we mentioned above, can be consistently implemented at the facilities of most firms in the segment, especially if they are direct competitors (that is, they are not united in a holding), and are interested in continuous improvement of production.

World innovation examples

There is cross-industry innovation. They involve the introduction of various innovations at the level of the national economic system with the participation of enterprises representing different sectors of the economy. Examples of innovations of the corresponding type are the use of electronic signatures (in reporting, in the workflow) by various enterprises, the introduction of remote methods of managing the infrastructure of an organization.

The next criterion for classifying innovations is based on the factors of their occurrence. So, reactive and strategic innovations are distinguished. What is their specificity?

Classification of innovations: factors of development of innovations
Reactive innovations are understood as innovations that were developed due to the urgent need to modernize production – in a company, in an industry, in order to enhance the competitiveness of economic entities. An example of reactive innovation is the introduction of the same mobile payment terminals. If some firms start using them, others will have to do the same, otherwise they will lose market share.

What is strategic innovation? An example of this is updating the software of a company at the level of basic infrastructure funds. Availability of new software – on local PCs, on servers, on devices that ensure the security of the organization and solve other production problems. The strategic purpose of these innovations is that they are supposed to be used in order to provide competitive advantages in the future. The installation of advanced software modifications on the computers of an organization is one of the most important factors in successfully maintaining the competitiveness of a modern enterprise.

This is the classification of innovations with examples. Consider other important aspects of the development and implementation of innovations. Among those – preparation for the implementation of innovations. Let’s study this aspect in more detail.

Preparing to innovate
Most innovations appear in the economy and society for a reason – some stage of preparation for their implementation is underway. She may suggest:

– analysis of the relevance of certain innovations;

– an assessment of the resources available to a potential developer to create an innovation;

– analysis of the prospects for market demand for innovation.

An important aspect of preparing for the introduction of innovations is the study of the needs of society. In connection with what it can be important?

The social aspect of introducing innovations
With all the advantages of innovation, their implementation should be carried out taking into account the characteristics of society. At the same time, people’s opinion may not always be the determining factor. People may want to innovate, see it as a necessary process. But, from the point of view of the development of society, such initiatives may not always be useful.

The examples of various types of innovations that we have discussed above are associated, first of all, with increasing production efficiency. In fact, this most often means that many human labor functions will be unclaimed. For example – due to the fact that it will be replaced by a robot in a number of production operations. Improving computing power can also play not in favor of the demand for a person in a particular production.

Examples of different types of innovations

Consequently, with too intensive introduction of innovations in industry, unemployment can increase significantly. The number of specialists that were needed before the implementation of innovations may not be required by the economy. At the same time, it is not always possible to employ people who have a certain qualification – you will have to compensate for the lack of their employment with state support. Whether the country’s budget will cope with this is a question.

Of course, innovations are needed primarily from the point of view of ensuring the competitiveness of the state’s economy. However, their excessive implementation can provoke an increase in unemployment, in the long term – emigration of qualified specialists. There is a version that innovations in the world – the examples of such we have considered above, have largely become a factor in the emergence of a crisis in the labor markets of many developed countries.

But it is worth noting that not all experts adhere to this point of view. There is another version as well. It lies in the fact that innovation stimulates the capitalization of the economy. The country’s enterprises, by introducing certain innovations, can develop more efficiently, expand sales markets, and attract foreign investment. Capital in the economy of the state stimulates the creation of new jobs and precisely in those industries where human labor can be problematic to replace. Thus, in accordance with this point of view, innovations are useful for society in any case.

Future-proof innovation
Let’s take a look at what major innovations – each of which we’ll look at – are seen by modern analysts as the most promising. We have already named some above, but a number of other notable innovations deserve attention.

First of all, it should be noted that experts are extremely positive about the role and prospects of the mobile Internet. Access to the network without being tied, relatively speaking, to a telephone wire, creates huge economic prospects – primarily in terms of expanding the advertising market and its methods. The mobile Internet creates conditions for an intensive exchange of information of various types, not only text, but also multimedia, also without being tied to a specific place where there is a telephone wire, people who communicate with each other.

Thus, the mobile Internet significantly speeds up business processes, the development of new technological solutions, and further implementation of innovations. An example of another promising trend is cloud technologies. The dynamics of their use also largely depends on the development of the mobile Internet, but not only of it, but of the online segment as a whole. Cloud solutions are a high-tech alternative to traditional data carriers, software formats, computing power, which can be more reliable, cheaper and more efficient than using a classic IT infrastructure.

Alternative energy is another major, basic innovation. An example of its successful implementation can be found in many countries of the world in more than one copy. It is most in demand, of course, in countries that have difficulties with the production of traditional fuels or want to reduce the dependence of the economy on them. Alternative energy, according to many experts, is important not so much from the point of view of replacing traditional fuels as in terms of human development of new territories – which are enough in the world, especially in Russia. If there is an opportunity to use solar, wind energy, there may be no need for an expensive, at least requiring huge investments, energy infrastructure in the corresponding regions,

Material retrofits are another notable trend. At the same time, it can affect a wide variety of areas of production. So, among the segments where this is very actively observed is construction. The development of materials is carried out, adapted to placement in a variety of natural conditions, to the effects of various substances – which increases their service life and performance. Modernization of materials may imply a reduction in the cost of their production and practical application in construction. This contributes to the strengthening of the dynamics of the rate of construction of buildings and structures for various purposes and stimulates many economic processes in the state. Modernization of materials is a process that concerns the production of household goods, clothing. Innovations in this area are significant from the point of view of improving the environmental friendliness of goods and the comfort of using them.

The most important aspect and, at the same time, the direction in the segment of innovations is the development of methods for their management. We are talking about innovations associated with the application of practical approaches to the preparation, implementation and maintenance of various technologies.

How can innovation management be expressed? Examples of these approaches are social technologies (especially online and associated with many innovative segments that we discussed above), research concepts in the field of analysis of socio-economic, production processes, the introduction of new methods of personnel policy in enterprises.

Classification of innovations with examples

What are the criteria for managing the implementation of various innovations? Any innovation is a process. The example of almost any of them testifies to this. The development of an innovation is being prepared, then it is introduced, after which the results of its use in a particular area are monitored. It is important to understand how each stage of working with an innovative concept goes, how to interpret their results.

Therefore, the most important criterion for the effectiveness of innovation management is the sequence of formation of a complex of knowledge about it. It is important to define the life cycle of an innovation. An example of this or that innovation, while reflecting a separate mechanism for its implementation in a particular enterprise, should be confirmed by data on many other entities involved in the implementation of the corresponding innovation. The availability of all the necessary data on innovation is a factor of its consistent and effective implementation, as well as ensuring its positive impact on economic.