Any company that offers a product or service to consumers should bear in mind that these elements will not last forever. The needs are changing, both in the citizens and in the industry itself, and that is why it is essential that companies are updated every so often. "Innovation is the introduction of new products and services, new processes, new sources of supply and changes in industrial organization, in an ongoing manner, and oriented to the customer, consumer or user." (Schumpeter, 2000)
Types of technological innovations
According to Pérez (2004) the main types of technological innovation based on novelty are:
- Radical innovation (New product never before seen in the market or new production processes in an industry. Something completely original and novel.)
- Incremental innovation (Gradual changes that companies implement progressively aimed at increasing the functionality and benefits of the products or services offered.)
- Innovation in technological systems (Radical innovation & Incremental innovation).
- Paradigm shift (The most important paradigm shifts can be said to have been the industrial revolution and now the digital age.).
According to Azar, G. And Ciabuschi,F. (2017) the main types of technological innovation based on its nature are:
- Business innovation (change on a variable of the marketing of a product that supposes a change in the way in which it is traded.)
- Technological innovation (Similar to innovation in technological systems)
- Organizational innovation (changes in the organization or direction under which a productive activity in a company takes place.)
- Schumpeter, J. (2000). Entrepreneurship as innovation.
- Perez, C. (2004). Technological revolutions, paradigm shifts and socio-institutional change. Globalization, economic development and inequality: An alternative perspective, 217-242
- Azar, G. And Ciabuschi, F. (2017). Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness. International Business Review 26 (2): 324–336.
Author: Gonzalo Martinez-Cañavate Gomez-Millan