Understanding Innovation: Process, Project and Product-Centric Views

Innovation is the most important source of differentiation in a dynamic environment. It helps to create new products that better satisfy customer needs, improve the quality of existing products, improve the technological process, reduce the costs of making consumer products. While many believe so, innovation is something much more than a successful commercial use of research results. 

The paper is devoted to the actual questions of research of scientific approaches to the theoretical study of the basic and most important terminology in innovation area. The studied related literature, systematized knowledge about the approaches to the definition of innovation and described track of thoughts of scientists about the innovation process and product, allowed to conclude that there is a real problem of inconsistency of basic concepts in the field of innovation. Whereas, the disagreements in the scientific literature in basic concepts suggest that it is necessary to carry out an in-depth analysis of glossary and to highlight the key concepts. 

The approaches to understanding the “innovation” have been determined and it was found that they have only a remote resemblance, and modern researchers cannot compare different terms which diverse in its source of origin. For the first time, not only concepts, but their key characteristics were considered in completely, structurally and step by step manner in a historical retrospective. The theoretical basis of each definition is evaluated, the general, particular, and narrow definitions are highlighted. 

A detailed analysis of the main studies related to innovation evaluation is provided. Through the uncertain task implementation scope, a set of methodologies including practices, techniques, procedures as well as the output characteristics, the difference between an innovative project as a key part of creating innovation and ordinary project is clearly defined and highlighted. This paper is intended to offer an analysis of the concept of innovation and to shed light on understanding and defining innovation process, product, and project as the basic concepts in the field of innovation activity. 

Based on the analysis, this paper proposed alternative, more reasonable definitions of these terms both from a scientific and practical point of view.

Keywords: innovation, innovation process, innovation product, innovation project, product innovation, process innovation.

Publisher: Efektyvna ekonomika, [Online], vol. 12, 2018, DOI: 10.32702/2307-2105-2018.12.209.

Dmytro Shestakov

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