Critically analyse the relationship between entrepreneur innovation and economic development

critically analyse the relationship between entrepreneur innovation and economic development

Free Essay: Discuss the relationship between entrepreneurship, innovation and economic development. in particular)? Those are some critical questions raised by this week's readings that centered on the topic of rationality and relativism. Read the full Economics essay paper on «Relationship between Entrepreneurship, Innovation and Economic Development». If you need an original Economics. The geography of entrepreneurship, innovation and growth of the relationship between knowledge and growth on one hand, and entrepreneurship and growth on the The process of innovation is consequently considered to be one of the critical issues in physical capital, cannot alone explain economic development.

I feel that in the future especially in the near future firms that do not involve themselves sustainably will find it difficult to compete within the market not having prejudged future needs and wants from consumers.

This will evidentially create a firm to be less competitive in the long-run. I feel that even though the symbiotic relationship between entrepreneurship, innovation, and economic development must tie in subsequently with sustainability it is a process that can be adapted throughout the innovation stage, and well as during economic development, and that entrepreneurs must not take away wholly from the prospect of growth and profit in such a way that may eventually negatively impact an idea, or a firm in the long-run.

This fundamental relationship demonstrates the need of positive conductivity between each other, and I think that unless this is not achieved then economic development and market retention will not be held. Thus evidently I feel the focal communication between each stage must remain if an ultimate goal is to be reached economically and in terms of sustainability.

Adam Szirmai and Wim Nadue Entrepreneurship, Innovation, and Economic Development. Harvard Business School Press. Economics of Sustainable Development. Beacon Press; New edition. The Theory Of Economic Development. New Brunswick and London.

Relationship between entrepreneurship, innovation and economic development -

Chiefly, innovation can contribute to make more profits by creating new products and improving the existing products. With a large number of competitors around a company, competitions in the market stimulate it to create and update products in order to increase its market share as well as its competitiveness.

In addition, innovation can always bring a huge profit, so it also appeals to investment which can be used in the further development. That can have a positive impact on the output and economic development. By way of illustration, Google Inc.

InGoogle Inc. UntilGoogle Inc. In this case, the managers in Google Inc.

Relationship between entrepreneurship, innovation and economic development Essay

They find a promising field and start their businesses, so innovation brings them a mass of fortunes eventually. Without a doubt, innovation accompanied with entrepreneurship can push the development of economy. As mentioned above, an entrepreneur who has the ability to apply creativity and innovation well should have a keen observation for existing problems in daily life.

Usually, the appearance of a knotty problem leads to the design and development of new products, and that is because entrepreneurs will find a commercial opportunity from the existing problem. During the process of solving problems, creativity can always be put in the first place. It means not only to generate new products but also to combine existing products together in new ways Kirton, As Kirby has shown, creativity can regarded as the ability to think fresh things, whereas, innovation is the ability to do new things.

Undoubtedly, the interaction between creativity and innovation is the core of solving problems. After the accomplishment of the new product, it is also extremely important to launch it in the existing market to make profits. That is the whole process from entrepreneurship to economic development. In this process, creativity and innovation become two significant factors. They are the core of solving problems, the essential conditions of entrepreneurship and the catalyst of economic development.

Simultaneously, solving problems becomes the main part of entrepreneurship. To sum up, it is apparent that there is an inseparable and closely connected relationship between entrepreneurship, innovation and economic development.

critically analyse the relationship between entrepreneur innovation and economic development

In factor-driven stage, the economy of a country is primarily driven by abundant and low-cost labor and natural resources. The contribution from innovation is negligible that is not worth considering in this period. Then, in efficiency-driven stage, countries seek to improve procession efficiency and promote productivity with existed technologies.

In this phase, innovation is a secondary consideration. Later, in innovation-driven stage, innovation is an essential element of economic development. Most sectors or industries are experiencing Schumpterian renaissance: In summary, innovation is the pre-requisite for real entrepreneurship, which adapted by entrepreneurship to stimulate economic development.

critically analyse the relationship between entrepreneur innovation and economic development

However, different level of economic development affects the popularity of entrepreneurship and the function of innovation. According to the definition, the objective of sustainability is to maintain an environment that assures to sustain the development of human beings. This issue is becoming popular in recent years because of its positive effects on entrepreneurship, innovation and economic development.

It is widely accepted that generating competitive advantages is crucial for entrepreneurs that own growing firms Penrose, cited in Kor and Mahoney, Hart cited in Paton, points out that the goal of sustainability is entirely consistent with the profit motive competitive advantages. In other words, sustainability, as the vital process of generating competitive advantages, plays a significant role in entrepreneurship. Taking social responsibility is an important aspect of sustainability and helps enterprises generate competitive advantages.

NIKE is a suitable example of this. NIKE was accused of using child labour in production of its sneakers in Pakistan in This unsustainable behaviour incurred criticisms from several society groups and damaged its brand image, resulted numerous people refused to purchase its products.

In this case, NIKE derives competitive advantages from its sustainable management. This indicates sustainability enhances the development of entrepreneurship. It is mentioned in the Section 2 that entrepreneurship has positive effects on innovation and economic development. Kao states that entrepreneurship is a potential force for sustainability, which indicates it is likely that sustainability has important influence on innovation and economic development through enterprise performance.

Haier developed and combined new Fluorine-Free and Energy-saving technologies and built new venues in order to produce this product Yao, Pan and Yuan, In other words, it destroys the traditional Fluorine-added air conditioner industry and launched new air conditioners into the market.

Through this case, the production of new air conditioner develops innovation and the new manufacture venues offer more job opportunities, which is beneficial to economic development. For these reasons, sustainability boosts innovation and economic development through enterprise performance. Conclusion In conclusion, the relationship between entrepreneurship, innovation and economic development is complex.