After World War II, at the dawn of space exploration, the public as well as the government perceived innovation was limited to big companies who had capital to invest in research and development. Research done by National Science Foundation, U.S Department of commerce and others found that half of all and 95% of essential innovation were born in small entrepreneur firms. (Spinelli, Jr. & Adams)
It was also observed that small firms return on investment in research and development were almost two times as compared to big companies. Steve Jobs once said ""Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.”
Thus innovation and research and development is no more limited to owning large capital, assets or having a heredity of business people in the family. With the infusion of internet into the society some 20 years back, people can acquire research materials and data as never before. New venture and innovation are not bound to old thought and ways anymore. People can start and pursue their dreams with capital from banks or alternative financing. Selling equity from your business generates capital for you to invest in your dreams. Facebook, Google are some good examples of business that started without large assets and capital or having rich business heritage.
People are more aware of the market products and their purchasing habit are not always limited to the old brand. Customers keep an eye out on the new and happening a part of it coming from marketing principle of consensus. These have driven the need for innovation now more than ever.
"Another interesting finding was that small firms indicated that they had a larger percentage of their sales affected by new products developed in the last five years. Evidently, smaller firms rely more on recent developments for product sales versus large firms. As a result, it becomes increasingly important for small firms to provide innovations at a more frequent interval for firm continuance. (SHAW, 1961)”
This reasons show that innovation is not limited to large firms but rather small firms seem to thrive on innovation and data shown that they have contributed more to innovation and radical changes in new innovation as compared to larger firms.
References
SHAW, R. (1961). A COMPARISON OF FACTORS AFFECTING INNOVATION IN SMALL AND LARGE FIRMS. Ann Arbor, United States of America: UMI Company.
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.
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After World War II, at the dawn of space exploration, the public as well as the government perceived innovation was limited to big companies who had capital to invest in research and development. Research done by National Science Foundation, U.S Department of commerce and others found that half of all and 95% of essential innovation were born in small entrepreneur firms. (Spinelli, Jr. & Adams)
It was also observed that small firms return on investment in research and development were almost two times as compared to big companies. Steve Jobs once said ""Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.”
Thus innovation and research and development is no more limited to owning large capital, assets or having a heredity of business people in the family. With the infusion of internet into the society some 20 years back, people can acquire research materials and data as never before. New venture and innovation are not bound to old thought and ways anymore. People can start and pursue their dreams with capital from banks or alternative financing. Selling equity from your business generates capital for you to invest in your dreams. Facebook, Google are some good examples of business that started without large assets and capital or having rich business heritage.
People are more aware of the market products and their purchasing habit are not always limited to the old brand. Customers keep an eye out on the new and happening a part of it coming from marketing principle of consensus. These have driven the need for innovation now more than ever.
"Another interesting finding was that small firms indicated that they had a larger percentage of their sales affected by new products developed in the last five years. Evidently, smaller firms rely more on recent developments for product sales versus large firms. As a result, it becomes increasingly important for small firms to provide innovations at a more frequent interval for firm continuance. (SHAW, 1961)”
This reasons show that innovation is not limited to large firms but rather small firms seem to thrive on innovation and data shown that they have contributed more to innovation and radical changes in new innovation as compared to larger firms.
References
SHAW, R. (1961). A COMPARISON OF FACTORS AFFECTING INNOVATION IN SMALL AND LARGE FIRMS. Ann Arbor, United States of America: UMI Company.
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.