Premium Essay

Relationship Between Entrepreneurship, Innovation and Creativity

In: Business and Management

Submitted By DorisWEI
Words 1982
Pages 8
With the rapid development of dynamic global economy, increasingly countries are seeking breakthroughs of their economy development. Stimulated by these ever-increasing competition pressures, exploitation of new ideas and businesses which are of great potential to thrive economies, accordingly, is gainning widespread attention (Mansfield, 1972; Wong et al., 2005). In consequence, on a global scale, not only some developed countries with strong capability to absorb and implement new ideas, but also some emerging developing countries, are taking measures to inspire entrepreneurship and innovation with purposes of benefiting economic development from these competitive advantages (Stoneman, 1995; Zhao, 2001). It is universally held that entrepreneurship and innovation are complementary and their combination can efficiently contribute to economy performance (Grupp, 2001; Stoneman, 1995). During the transfer from idea creation to eventually economy development, innovation is supposed to be a necessary condition, but it also demonstrates great insufficiency which can be completed by entrepreneurship’s mediating effects (Audretsch, 1995; Camp, 2005). This essay will primarily conduct a brief definition of entrepreneurship and innovation while introduce the role of problem solving and creativity, and thereby observe the synergy between entrepreneurship and innovation. Then theoretical and practical analysis will be made in their repective relationship with economy development. Ultimately, the holistic realtionship between entrepreneurship, in conjunction with innovation, and economy development will be discussed.

Entrepreneurship and innovation are inclined to be misinterpreted identical since they both indicate creation and new development, but meanings they rootly represent are distinctive. Innovation is an instrument that intergrates, disperses and upgrades extant...

Similar Documents

Premium Essay

Discuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role If Any Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business

...In such a relationship, entrepreneurship with innovation is the major driving force behind the sustainable economic development and thus, entrepreneurs play the key role in manipulating the factors of production that include land, labour, capital and also the natural resources (Econlowdown, n.d.) to cause economic growth. In short, entrepreneurship contributes to the economic performances by introducing innovations, effectively allocating resources and creating changes. Hence, the aim of this essay is to discuss the nexus of entrepreneurship, innovation and economic development as well as the role that creativity and problem solving play in this relationship. From the business point of view, entrepreneurship is referred to the capacity and willingness to develop, organise and manage a business venture along with any of its risks in order to make profit by using the factors of production (BusinessDictionary.com, n.d.). Clearly, entrepreneurs are the people with particular characteristics and traits of behaviours whereas entrepreneurship is the result of what entrepreneurs do and refers to events and their economic impact (Lumsdaine and Binks, 2006). Innovation on the other hand is one of the key tools that could assist entrepreneurs to effectively realise the market opportunities that leads to a sustainable economic development. New ideas that add value to a firm is introduced by innovation....

Words: 1745 - Pages: 7

Premium Essay

Discuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Roles If Any Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business

...In this essay, it would be found out that the relationship between entrepreneurship, innovation and economic development is a multidirectional cycle, which means that they affect each other in two directions. From one direction, when there is a problem entrepreneurs would use innovation which comes from creativity to solve it by entrepreneurship. Innovation deliveries new industries or get exist industries developed and both of those actions will lead economic to develop. The births of new industries encourage people with entrepreneurship to organize new economics. From the other direction, the development of economic absorbs new investments. Those investments include not only labour, land and capital, but also innovation which can improve the new good or service. The development in new industry can also offer money or other capital to encourage people with creativity to innovate. Innovation can be protected by entrepreneurship because it relies on innovation. As Thomson Edison* said, his inventions were from seeing a worthwhile need to be met and trailed after it until it came. So it can be seen as innovations are from solving problem and creativity. As an entrepreneur, spotting a problem and turn it into opportunity by creativity is called entrepreneurship. Entrepreneurship sets innovation to processing first and then gets profits from economic development. As Bolton and Thompson (2000) has recognized, entrepreneurship is about change and innovation....

Words: 898 - Pages: 4

Premium Essay

Discuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role If Any Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business World to Support Your Discussion

...Nottingham University Business School Undergraduate Programmes TITLE OF MODULE: Entrepreneurship and Business (N11440 MY) Title of Work: Discuss the relationship between entrepreneurship, innovation and economic development. What role if any do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion COPY 1 TITLE OF MODULE: Entrepreneurship and Business (N11440 MY) Title of Work: Discuss the relationship between entrepreneurship, innovation and economic development. What role if any do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion COPY 2 Austrian writer, professor, management consultant and self-described “social ecologist,” Peter F. Drucker once said “Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.” (BrainyQuote, 2014) This essay aims to show how innovation, entrepreneurship and economic development are all linked together as shown in the statement above....

Words: 2233 - Pages: 9

Premium Essay

Entrepreneurship and Business

...However, it also appears that the term entrepreneurship is not easy to understand although this subject seems similar to the term of entrepreneur. Based on this background, this essay will first fully analyze the principal subject of entrepreneurship reflecting various economists’ perspectives, and secondly illustrate the relationship between entrepreneurship and innovation, before suggesting that in general, entrepreneurship is closely linked with innovation and they are both significant elements in the development of economy. Furthermore, this essay will also illustrate that creativity and problem solving are effective capabilities in entrepreneurial processes of business planning and decision making in the realization of innovation. To understand the relationship between entrepreneurship, innovation and economic development, it is crucial and necessary to analyze the keywords in this statement. First of all, what is entrepreneurship? In fact, despite the potential that every individual may take a mutual view directly on the term of entrepreneurship, there is no fixed definition of this term. As is noted by Baumol (1968: 64), the concept of entrepreneurship is in fact obscure and it is not often the case that, this term can be defined explicitly in the theoretical scope....

Words: 2324 - Pages: 10

Premium Essay

Economic Development and Creativity

...However, consider above all, based on much controversy about “who is the first”, the relationship between both of them is concluded as interacting and complementing with each other.For instance, Zhao (2005) insists that “a combination of entrepreneurship and innovation holds the key to organization sustainability in this period of rapid change and nonlinear manfriends " .In addition, Drucker (1985) argues that “entrepreneurship is held to promote wealth creation...

Words: 1295 - Pages: 6

Premium Essay

Theory

...While it may be true that innovation, as a crucial part of the entrepreneurial process, and entrepreneurship both have positive effects on economic growth, the overall GDP of a domain country will decrease as the rate of entrepreneurship has been driven above the equilibrium. At the same time, creativity and problem solving are fundamental in these relationships. This essay aims to deeply illustrate the relationship between entrepreneurship, innovation and economic growth separately through theoretical literature and empirical evidence in section 2, then in section 3...

Words: 2533 - Pages: 11

Premium Essay

Relationship Between Entrepreneruship Innovation and Economic Developement

...Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theories and examples from the business world to support your discussion. Since last century, entrepreneurship and innovation have been heavily discussed. Entrepreneurs create new business and provide the job opportunities to society as well as promote the economic development. However, with the increasing global economic competition, normal entrepreneurship becomes less competitiveness, government committed to develop innovative entrepreneurship in recent years (Cukier, 2006). Therefore, the relationship between innovation and entrepreneurship becomes one of the most significant topics in the business field. Economists do a large number of researches to explore the connection between entrepreneurship and innovation as well as the position they related in economic development. During the process of exploring, a considerable amount of definitions are put forward by experts based on their research knowledge and the analysis of entrepreneurs developed in recent decades. This essay will list the definitions put forward by different economists, then support the ideas that innovation, entrepreneurship and economic development are deeply connected and interacted....

Words: 2450 - Pages: 10

Premium Essay

The Relationship Between Entrepreneurship Innovation and Economic Development

...Technological innovation has made a great contribution on economic development. However, entrepreneurship, another concept, also has essential consequences in terms of economic performance. The concept of the “entrepreneur as innovator” which was established by Schumpeter (1911) drives economic development. Therefore, it can be inferred that entrepreneur is a key source which leads to the increasing of economic growth. This essay will discuss the relationship between entrepreneurship, innovation and economic development in four sections. The first section will focus on the relationship between innovation and entrepreneurship. Section two will show the advantages of innovation in economic development. Section three will describe the impact of entrepreneurship on economic growth which divided into three parts: the regional, industry and global levels. The final section will concentrate on the role creativity and problem solving play in this relationship. The relationship between innovation and entrepreneurship is mutual. On the one hand, innovation is a precondition of entrepreneurship to drive entrepreneurial establishments to succeed. In order to prove this, Hitt, Ireland, Sexon and Camp (2002) point out that a successful entrepreneurial establishment cannot leave the help of essential innovation. Many innovations are produced by individual entrepreneurs; it usually takes place in large companies in developed countries....

Words: 1589 - Pages: 7

Premium Essay

Entrepreneurship and Business

...Section one will describe that innovation is the core of entrepreneurship and entrepreneurship will also enhance the development of innovation. Section two of this essay will illustrate innovation makes huge influences on improving the economic growth and economic growth will speed up the progress of innovation. In section three, relationship between entrepreneurship and economic growth will be demonstrated, while the...

Words: 2539 - Pages: 11

Premium Essay

Creativity

...TECHNOLOGY ENTREPRENEURSHIP (ENT600) UNIT 2: CREATIVITY, INNOVATION AND TECHNOLOGY ENTREPRENEURSHIP Entrepreneurship Dept, FBM (2009) ENT600/UNIT 2: CREATIVITY 1 Introduction • Discovery of opportunity at the right time and place is the corner-stone of any entrepreneurial success • Technopreneurs need to be creative in discovering new opportunities (in terms of products or services) either through invention or innovation. Entrepreneurship Dept, FBM (2009) ENT600/UNIT 2: CREATIVITY 2 What is creativity? • Creativity can be defined as the production of new and useful ideas as well as the ability to discover new ways of looking at problems and opportunities. • It is the ability to use imagination to develop new ideas, new things or new solutions. These generation of ideas should lead to improved efficiency or effectiveness of a system (Adapted from Fredrick et al., 2006 and Dorf and Byers, 2005) Entrepreneurship Dept, FBM (2009) ENT600/UNIT 2: CREATIVITY 3 Creative ideas often arise when creative people observe established solutions, practices, or products and think of something new or different....

Words: 1965 - Pages: 8

Premium Essay

Idiots

...Course Time Table • Week 2: Wednesday 25th September 2013 – Lecture – – – – Module Introduction and Rationale Course structure and rationale The importance of an integrative learning approach Why study Entrepreneurship? 4 • Week 3: Wednesday 2nd October 2013 – Lecture – Definitions of entrepreneurship – The main issues of debate • Week 4: Wednesday 9th October 2013– Lecture: – – – – The need for invention and innovation The nature of innovation Creativity in Theory and Practice Entrepreneurship and Innovation from Theory to Practice 5 • Week 5: Wednesday 17th October 2013 – Lecture: –...

Words: 1579 - Pages: 7

Premium Essay

Introduction to Corporate Entrepreneurship

...The manual will put emphasis on the different focal areas of corporate entrepreneurship such as benefits, barriers and the internal success factors with the outcomes to provide visibility on corporate entrepreneurship. The focal areas ensure business viability and sustainability through the understanding and adoption of corporate entrepreneurial thinking with the organisational objectives to increase business wealth and gaining competitive advantage through innovations....

Words: 3016 - Pages: 13

Premium Essay

Entrepreneurial Strategy

...Wiley. p.69  Creativity  ideas, concepts & inventions  Innovation  the process of development and commercialisation  Entrepreneurship  couples opportunities and resources Innovation Exploit Incremental Explore Radical Kirzner The producer-entrepreneur •Alert and responsive to opportunities that exist •Exploits disorder (gaps) to move the market back to equilibrium Schumpeter The innovator-entrepreneur: •Creates products and processes to disturb market equilibrium •Creates opportunities Innovation & Performance Some ‘stylised facts’ about the relationships between innovation and performance:  Relationships between R&D, patents, new products and performance are strongest at the industry level, weakest at the firm level  Returns from process innovation are typically four times those from product innovation  R&D expenditure stronger than patents in predicting performance Innovation & Performance  At firm level, R&D and new products both associated with higher value-added and market to book values  Returns from use of new technology higher than from its generation Sources: J. Bessant & J. Tidd (2007) Innovation and...

Words: 733 - Pages: 3

Premium Essay

Entrepreneurial Creativity

...DEVELOPING INDIVIDUAL INNOVATION Entrepreneurship Imagination & Creativity: Imagination and Creativity goes hand by hand i.e. with out imagination you cannot be creativity. This combination is the key to success for entrepreneurs. Potential entrepreneurs always analyze from every possible angle. What is the problem? Whom does it affect? How does it affect them? What costs are involved? This is the type of analysis that blends creative thinking with systematic analysis. The Role of Creativity: Creativity is generation of idea that results in improved efficiency or effectiveness of a system. Two important aspects of creativity exist: process and people. Process: it is goal oriented and designs to attain a solution of a problem. People: they are resource who determines the solution. Table 5.1 shows two approaches for distinguishing innovative entrepreneur from adaptive entrepreneurs and found their application very effective. The Nature Of the creative process: Creativity is the process that can be developed and improved. Many people incorrectly believe that only a genius can be creative, but it is not like that. It’s the negative phrases prohibit people from thinking further. Negative phrases are shown in table 5.2. There are four steps in creativity process Step 1: Background and knowledge accumulation: Successful creations are generally preceded by investigation and information gathering....

Words: 1563 - Pages: 7

Premium Essay

Case Study

...Schumpeter * Knowing the industry analysis "Porter's Five Forces" and being able to use this tool in entrepreneurship * Knowing the limits of "Porter's Five Forces" in entrepreneurship and being able to discuss these limits * Entrepreneurship as "Rule Breaking Behavior" * Creating and managing virtual enterprises * Theory of "Social Capital" and obtaining resources via networks * Discussing Branding * Discussing Cold calls * Discussing Portfolio businesses * Competitive advantages that origins from business model innovation * "Give and Get - Risk and Reward-Matrix" * Discussing factors of success in entrepreneurship * The concept of "sunken costs" and risk minimization * Knowing the relationship between upfront investment costs (potential sunken costs), variable costs and lot size * Knowing the relation between costs, earnings, and live cycle * Critically discussing the theory of the entrepreneur as the risk taker * Knowing Entrepreneurship as an exceptional form of value creation Formularende Thema 3 Nantucket Nectars, 26.11.2014 The decission that needs to be taken: exit the business (IPO, sale) or continue under private ownership? But the case has by far more to offer. Topics covered by the case include but are not limited to: * Origin of business ideas * Factors of success: how have they been able to grow their company? What made them successful in the "boat business"?...

Words: 382 - Pages: 2