The essence of the innovation process is focused actions related to the initiation and development of a new product or service, implementation on the market and its further distribution.
The innovation process represents a consistent set of actions from the idea of innovation to the design, creation, implementation and dissemination of this innovation. We will consider these stages from the concept to its implementation below. In other words, the innovation process is the activity of an economic entity, that is, the process that consists in developing and implementing the result of scientific research into a new or improved product or service sold on the market, or a technological process that is used in production activities.
The innovation process includes seven components connected in a single sequential chain, which form its structure. These include:
- initiation of an innovative idea ;
- marketing research;
- development and release of innovation;
- implementation of the produced innovation;
- innovative promotion;
- assessment of economic efficiency ;
- Spread.
The innovation process begins with initiation - an activity that consists in determining its goals and objectives, comprehending the corresponding idea and documenting it. The latter is its transformation into a document of property law (copyright certificate, license) and into a technological document.
Initiation of innovation is the beginning of the innovation process. After the idea of a new product has been documented, marketing of innovation is carried out, during which the demand for a new product or service is examined, the quantity or volume of output, product characteristics and consumer properties that a product entering the market must have are determined. After this, the sale of innovation takes place and a small batch appears on the market, which is promoted, evaluated for effectiveness and disseminated.
Innovation promotion is a system of measures that is aimed at its implementation. After that, an economic calculation of its effectiveness is carried out. The innovation process ends with the diffusion of innovation.
Diffusion (translated from Latin - spreading, distribution) means the spread of mastered innovation in new areas, new markets and in the new economic and financial situation.
Innovation process management As the subject of research, 4 main stages passed in its evolution.
At the first of them, a factor approach was implemented, where evaluation criteria were considered for each component of the corresponding management. At that time, for the most part, extensive development methods were applied, manifested in a quantitative increase in the scientific and technical potential.
The second stage was characterized by the development of the concepts of innovation management functions, focuses on the study of the adoption of SD management and process types (managerial decisions).
At the third stage, they began to apply a systematic approach, which allowed us to consider the subject of innovation (enterprise, organization, etc.) as a system of internally interconnected components, focused on achieving specific goals and the principle of feedback.
The fourth stage is related to the growing popularity of the situational approach to understanding the goals, meaning and content of innovative management, which allows us to analyze the factors of the external and internal environment, systematize and optimally combine various behaviors of the innovative manager or effective management decisions.