Innovation can be defined as creating new ideas, new imagination, new thoughts or giving new solutions to the existing problems, can be in the form of products, services or can be an idea.

Innovation can be described as seeing the things differently and disassociation from the early beliefs.

But why innovation should be encouraged?

There are numerous reasons why we should encourage innovation. The innovation able companies or organizations to survive in the competitive market, and ultimately leads to economic growth. As a developing nation like India we really need that the major market players along with the government moves towards the path of innovation.

Innovation also plays an important role in the advancement of the society.

In the context of Indian economy,  India is the world’s largest country by areas and the second most populated country in the world. Currently, 65 percent of the Indian population is below the age of 35, the country’s working-age population i.e. the ones between 15 to 64 years, will touch one billion by 2030. Furthermore, by 2021, the emerging middle-class segment in Indian will comprise nearly 900 million people. Thus the companies will need to innovate themselves and come up with new job opportunities to cater to the emerging economy like India.

ANSWER TO WHY? 

Without innovation, there isn’t anything new, and without anything new, there will be no progress. Innovation is the core reason for modern existence. 

Why innovation is needed: 

  

MACRO PERSPECTIVE  

Our society revolves around continuous economic growth. Innovation is important to the advancement of society as it solves social problems and enhances society’s capacity to act. 

It's responsible for resolving collective problems, usually with new technology. These new technologies, products, and services simultaneously meet a social need and lead to improved capabilities and better use of assets and resources. 

In general, the result of innovation should always be improvement. From the society’s perspective, the fundamental outcomes of innovation are economic growth, increased well-being and communication, educational accessibility and environmental sustainability. 

Technological innovation is considered as a major source of economic growth. The purpose of innovation is to come up with new ideas and technologies that increase productivity and generate greater output with the same input. 

If we look at the transformation of the US, once a largely agrarian economy that advanced from emerging nation status in the mid-19th century to an industrial economy by the First World War, we can see that the agricultural innovations and inventions were one of the largest factors that helped bring about the Industrial Revolution. 

According to the new World Economic Forum, nearly 133 million new jobs may be created by 2022 while 75 million jobs are displaced by AI, automation, and robotics. 

Technology innovation can also help rural areas to become more sustainable. Although people can access information and improve their knowledge. 

 MICRO LEVEL

 Looks at the importance of innovation for an organization. 

In general, innovation can deliver significant benefits and is one of the critical skills for achieving success in any business. 

Competitive advantage means the necessary advancements in capabilities that provide an edge in comparison to competitors of the industry.

For organizations, the ability to get ahead of the competition is one of the most significant reasons to innovate. Successful, innovative businesses can keep their operations, services, and products relevant to their customers’ needs and changing market conditions. 

According to a report, only 12% of the Fortune 500 companies from 1955 are still in business and half of the 500 companies will be replaced in the next ten years, which is why it’s important to be able to quickly respond to external changes. 

Economic growth is driven by innovation and technological improvements, which reduce the costs of production and enable higher output. the more likely you’re able to reduce costs, increase turnover and provide your customers with solutions that truly benefit them. 

Innovation also has a positive impact on company culture as it increases the ability to acquire, create and make the best use of competencies, skills, and knowledge.innovation practices can help build a culture of continuous learning, growth and personal development. 

FAILURE LEADS TO INNOVATION 

Sometimes failure also can lead to innovation. It acts as a trigger to innovation, or can define what to do or what not to do to make that innovation successful. Failure can be proven as an encouragement to the innovation. 

It can be said that, "failure is the mother of innovation". 

                                                                             

If you are want to innovate something, first you learn to accept the failure in the process of innovation. You can't denied the fact of being failed, or their is not any surety that you would we succeed in the first attempt. 

The innovation itself creates a culture of failure and culture of failure can be the reason for new innovation. 

In the 1950s the Jacuzzi brothers invented a whirlpool bath to treat people with arthritis.  Although the product worked, it was a sales flop. Very few people in the target market, sufferers from arthritis, could afford the expensive bath. So the idea languished until they tried relaunching the same product for a different market – as a luxury item for the wealthy.  It became a big success.