What is Technological Innovation? – Uses, Types, and More
What is Technological Innovation?
Technological innovation says that any company which agreements a product or service to consumers must remember that these elements will not last forever. Needs are changing, both in citizenship and the industry itself, so companies must update themselves from time to time. It is in this context that we have to talk about technological innovation. This concept is deeply rooted today, and that encompasses many more things and aspects than we can imagine, not only those related to the improvement of technology itself.
What does Technological Innovation Use?
Technological innovation refers to creating a new product or service aimed at consumers. In other words, we mean that there is innovation when companies present new elements to the market or, failing that, they improve existing ones. Although this innovation usually orients to the commercialization of the product or service, it can also be related to the production processes within the company. Ultimately, innovation is about change within the industry.
But despite being called technological innovation, it not only addresses modifications within technologies, here changes occur in many other sectors that are also important within the company. We refer to scientific, financial, and commercial activities. The objective of this innovation is that you can offer new products and services in the market (be it local, national, or international). While innovation focuses on novelty, it also improves existing services, products, or other systems. It also affects new production processes and unique organization and management methods.
The Types of Technological Innovation
Technological innovation is a concept that encompasses a large number of elements and actions. Still, depending on the specific task that carries out, we will name it in one way or another. In this sense, we can differentiate four types of technological innovation. First of all, we will talk about the radical type. As its name indicates, they are the innovations that allow us to reach new markets. Although we can also be industries or other sectors where we can develop some activity. Typically, radical innovations occur in public administration, the service sector, or cultural matters.
On the other hand, we find incremental technological innovations, which are more progressive. Since on this occasion, instead of opening new fields. What it does is improve technical processes, although always based on their primitive characteristics. Therefore, it is an innovation to offer better technologies but not create new ones.
Finally, we can find two other types of changes. On the one hand, in technological systems and paradigms. Regarding the former, it must say that they encompass both radical and incremental innovations. Although they also include innovations concerning the company’s organizational systems. And as for the paradigms, it is worth mentioning that it is the change that occurs in preconceived ideas about technological and productive systems. In other words, a paradigm shift would be an industrial revolution.
Characteristics of Innovative Companies
For a company to be successful, it must carry out technological innovations from time to time that allows it to adapt to new times and to the needs that arise in society. Therefore, any industry that wants to introduce innovation in its interior must respond to three essential characteristics. We refer to efficiency, competitiveness, and quality.
By having these three aspects, every company can create or improve the products or services and financially profitable the investment made, increasing its sales. In this, professionals who have carried out specialized studies such as a master’s degree in innovation. All the necessary knowledge obtained have particular relevance. Of course, it is essential to detect possible improvements that can be carried out in the future, considering the consumer’s needs and production processes.
Ultimately, an innovative company must create or renew new products, services, and even the production techniques it uses. In the same way, you must also make changes in the company’s organizational system and modify the requirements for hiring professionals, requesting different degrees to adapt to the new times.
We have now examined why the RBV and capabilities approach is so essential to understanding and delivering innovation; briefly reviewed the genesis and development of the process; outlined the anatomy of ability, and the nature of – and differences between – resources, competencies and capabilities and their ‘core’ variants; and discussed knowledge assets as core capabilities. This free course, Technological innovation: a resource-base view, has enabled you to develop a critical understanding of the development, management, and application of some of the essential capabilities of technological innovation.