Technical Innovation in the Czech republic
Innovation concept, basic definitions | Contents |
- firms which were in existence at the beginning of the period under review and which have implemented products or processes during the period which are technologically new (or improved) for the said firm;
- firms which have come into existence during the period under review and which:
- at their founding implemented products or processes which are technologically new (or improved) for the operating market of the firm;
- after their founding implemented products or processes later during the period which are technologically new (or improved) for the said firm.
Technological development and innovation are crucial factors of production and economic growth and employment. These days, all people and economic subjects must adapt to the external pressure of the turbulent environment, react on the challenges and eliminate threats. The way to the success represents innovations.
Innovation can of course occur in any sector of the economy, but we use guidelines from the Oslo manual published by OECD for measurement scientific and technological innovation and therefore we focus on the business enterprise sector. We deal with changes, which take place at the level of the individual firm. The minimum entry is that the product or process should be new (or significantly improved) to the firm; it does not have to be new to the world. Technological product or process innovations (TPP innovations) relating to primary and secondary activities are included, and so is process innovation in ancillary activities. TPP innovations can be broken down between product and process, and by the degree of novelty of the change introduced in each case.
Innovation , as it is defined here, is a new or technologically improved product (good or service) introduced to the market or the introduction within said enterprise of a new or significantly improved process. The innovation is based on the results of new technological developments, new combinations of existing technology or utilization of other knowledge acquired by your enterprise.
Product innovation (good or service)
Product innovation is a good or service, which is either new or significantly improved with respect to its fundamental characteristics, technical specifications, incorporated software or other immaterial components, intended uses, or user friendliness. The innovation should be new to the said enterprise; it has not necessarily to be new to the market. It does not matter whether the innovation was developed by the said enterprise or by another enterprise. Changes of a solely aesthetically nature, and purely selling of innovation wholly produced and developed by other enterprises, shall not be included.
Process innovation
Process innovation includes new or significantly improved production technology, new or significantly improved methods of supplying services and of delivering products. The outcome should be significant with respect to the level of output, quality of products (goods/services) or costs of production and distribution. The innovation should be new to the said enterprise; the enterprise has not necessarily to be the first to introduce this process. It does not matter whether the innovation was developed by the said enterprise or by another enterprise. Purely organizational or managerial changes shall not be included.
Implementation of a quality standard such as ISO 9001 is not a TPP innovation unless it results in a significant improvement in the production or delivery of goods or services.
Innovating firms comprise: