Various studies and experiences have recognized innovation as the main parameter for economic growth and the source of competitive advantage for entrepreneur startups. But why entrepreneurs startups should continue to make innovation?

Every year there are more than 100 million new businesses that it translates into roughly 11,000 startups launched every hour! In this fast-paced ecosystem, it is vital for startups to keep innovation if they want to survive.

Innovation is more than an idea or invention; in fact, an invention or idea has its economic and social impact when it is implemented in a form of innovation in the organization. The definition recently released in the fourth edition of Oslo Manual (2018) defines innovation as a new product or process (or a combination of both) which is significantly different from previous products or processes for potential users (product) or units using them (process).

Organizational innovation can range from small innovative changes to use a product optimally or a complex corporate process; thus, it depends on a set of capabilities scattered at the organizational level and aligned to achieve organizational goals. This set of capabilities creates a meta-capability, which is known as innovation capability.

This capability prepares entrepreneur startups for the introduction of a new product and application of a new system in the market and industry. Startups need innovation capacity and a wide range of resources, assets, and capabilities to implement innovation in a changing environment.

Dimensions of innovation

OECD has recently introduced a significant change in the definition of business innovation in the fourth edition of the Oslo Manual 2018, compared with the previous one, it reduced its types  from four classes (product, process, organization, and marketing) to two main types: product innovation and business process innovation. 

Product innovation is divided into two main categories: product and services; and business process innovation is divided into six categories: production, distribution, and logistics, marketing and sales, information and communication systems, administration and management, product and business process development.

Any innovation may be a combination of product or business process innovation. Regarding this, since this study focuses on innovation drivers in manufacturing organizations, both aspects of innovation are explored. (OECD 2018)

With all of this in mind here are some of the most influential benefits any firm can acquire from innovation:

Innovation acts  as a competitive tool in startups

Usually, successful startups born on an innovative idea that helps them become and remain the market leader. But, while new rivals appear in the ecosystem they have to be able to keep up with the pace of innovation in the market.

Business Innovation Makes start-ups more efficient

Google has long encouraged its employees to devote 20 percent of their time to their own side projects, which is one reason why it remains one of the most innovative companies in the world. For companies that invest in side project initiatives, the outcomes can be incredible: Gmail, Google Maps, Twitter, Slack, and Groupon all started as side projects.

Distance your level with compatitors

If you want your company to remain the leader, it is ideal to keep thinking about the next step, the next level of innovation and experiment. This will ensure that you stay far ahead of your competitors.

Conclusion

As we all know 95% of startups fails in the new year not just because they are not innovative but as a result of not being able to make MORE innovation. So, if you are an entrepreneur and you want to establish a startup you have to know how you can make innovation as a running driver in your organization.

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