The concept of “innovation” came into Russian from England. Translated, it means "innovation". From the point of view of economics, innovation refers to those types of goods that are new and universal for the consumer. What is enterprise innovation?
As a rule, the technology market does not stand still. Business must also develop, that is, managers, in order to get the greatest profit, must introduce new technologies, use new processes for creating products in production. All these innovations are called enterprise innovations. What is the effectiveness of innovation? Think of the philosopher and economist rolled into one - Adam Smith, who began to study the division of labor. He proposed to consider the structure of the business of making ordinary pins. Having hired one worker who is not familiar with the manufacturing technology, one can hardly expect large volumes of this product. But if you carefully think over the entire process of its manufacture and hire professionals (one unwinds the wire, the second straightens, the third cuts, the fourth works directly with sharpening, etc.), then you can achieve high results in making pins. And if we add here new technologies in the field of physics and production, then the volumes will grow enormously. Some enterprises use their own innovations, that is, they develop them themselves, some take them from the experience of their employees. And other executives borrow innovations from other executives, for example, by purchasing equipment. As a rule, the first case is better because your competitors will not have these technologies (of course, if one of the employees does not blab it). Enterprise innovation also lowers costs, as the introduction of self-driving devices can reduce the workforce. Companies that follow and use various innovations are more likely to take a leading position in the market, because the consumer always wants something new.
