Innovation vs imitation
In a subject’s literature we can notice many different opinions in that significant aspect. First of all, many scientists consider innovations as the first usage of an idea. Any consecutive implementation of that idea in other organisation is considered to be an imitation (diffusion). The most popular representative of this approach is a godfather of a classical definition of innovation Joseph Schumpeter. He divided the process of introducing innovations in the economy into few steps. The first step is an invention, that is to say an idea or creation of mind. Secondly, the innovation emerges as an effect of verification of an idea, and its practical usage. The last stage (diffusion) consists of promoting and spreading the new product/process through imitating this concept by other companies.
Schumpeter stated that only first use of a new product might be classified as an innovation. So, the real innovations were unique and inimitable.
On the other hand, there Peter Drucker and Philip Kotler are representatives of a broader concept of innovations. According to them, if any technology solution is new for the user, then it can be called an innovation. No matter if the idea is implemented by its author or imitator.
Even if we treated the innovation in accordance with the classical definition, the imitation also could be a sign of entrepreneurship. Anyway, it provides an advantage solely over those competitors, who are not able to keep up with the developing market. It doesn’t allow the enterpreneur to create and shape the future and to be a major player on the market.
The main advantage of introducing products that are already known is that this strategy generates reduced risk to your company.
What is the main objective of innovations?
The imtroduction of a game-changing innovations is a journey into the unknown. So, the risk is rising. Being the copycat is much more comfortable and safe, as it means to follow the well-trodden paths. But in this case, the innovation rent is much smaller – profits fall as the new product becomes more popular. If we want innovation to be our competitive advantage we have to assume that this is a repetitive process of developing ideas into reality.
The basic objective of innovative approach for a business activity is to protect against competition and to maintain profits on the safe level. In today’s world every businessman is aware of the importance of innovations. The bigger the competition on the market, the more innovative your company has to be to entry and gain the leading position.
Only those businesses, which manage them in a correct and constant way may feel quite secure. This is why the duty of each man of affairs is to understand the meaning and influence of innovative approach.