Economic Theory and Technological Change Term Paper

Economic Theory and Technological Change - Term Paper Example Commercialization is the process that turns an invention into innovation (Feldman, 2004). Innovation can be driven by new technological development or customer demand. Many new products arise from attempts to meet market demand than from new technologies. The technological breakthrough of the laser has led to various innovative applications of this technology, for example in keyhole surgery and laser-correction of poor eyesight. Windscreen-wipers used no new technology at all. They just met the market need for clean windows while driving (Different Kinds of Innovation). When most people think of corporate innovation, they think of product innovation which involves launching of a new product. Even a small improvement in a product can help keep a company one step ahead of its competitors. Process innovation may sound comparatively dull but is extremely important. In any large company, lots of people are involved in internal processes that allow the company to run smoothly and legally. These are the people in middle management, human resources, accounting, finance, administration, and the like. In general, they recognize processes that do not work well and have ideas about how to make those processes more efficient (The Four Kinds of Corporate Innovation). The economist Joseph Schumpeter’s major contribution of the economic vision of innovation has helped strengthen the theoretical base of one area of strategic management, that is, innovation strategy and innovation management within the enterprise. His theories are interesting also because they make a useful contribution to the multidisciplinary study (economics and management) of innovation.