InnovoQuest    Information :: Why Innovation?

The development of innovative products and services is a primary key to competitive advantage. Increased competitiveness, reduced costs and the overall satisfaction of employees are additional reasons for organisations to be innovative. Firms that make a conscious decision to establish and maintain their positions in increasingly competitive markets require the commitment of their workforce to a number of important business objectives: focus on customer needs, focus on technology, commitment to improvement of products and processes among others.

It has been shown that innovation is an uncertain event under the best of conditions, but, it is necessary for long term sustainability of an organisation. Freeman and Soete (1997) note that “not to innovate is to die”. Tidd et al (1997) conclude in their introduction that innovative companies “are on average twice as profitable as other firms”. Innovation has been identified as an important factor for businesses striving to achieve better performance (DTI, 1998) and it is perceived as one of the essential elements for continuing success and profitability of organisations (DTI, 1998). Innovation is also regarded as a crucial element in the marketing success of organisations and it has been observed that those that were more innovative, as defined by patent registrations, grew more quickly and were more profitable with profits and growth being more resistant to downturns in economic cycles.

The need to create and maintain a sustainable competitive business in the complex and fast paced business environment of the 21st century is a key issue facing many of us. What is also becoming increasingly clear is that simple repetition of what has been successful in the past is no longer enough to ensure future viability. The shapers of culture in an organisation, its leaders and managers, need to create an environment in which the qualities of creativity, investigation and innovation can flourish.