The economic essence and the nature of innovation

Abstract

The article addresses the problems of the conceptual apparatus of innovation as an economic category, the basic aspects of the innovation activities of the organization, conducted a historical analysis of the evolution of the concept of “innovation”. Previously, it was customary to assume that the process is driven by innovative organizations that develop and offer innovations, today; society has come to the realization of the consumer – the driving force of innovation development. All the analyzed theory can be combined approach to “innovation” consideration in terms of business benefits. The authors of the twentieth millennium write about innovation because of constant movement and change of the market economy, which leads to the speedy preparation of pre – businessman benefits by satisfying needs. Based on the foregoing, we believe that it is necessary to distinguish the concept of “invention” and “innovation”. Under the invention, we mean a new technical solution. An innovation is the initiation of the idea of innovation as a way out of intellectual activity, i. e., a new product, a new method, a new solution. By innovation author implies innovation, ie an invention or innovation after the commercialization process, demanded and implemented - introduction to the market, has successfully sold and which brought a profit. Treat innovation as the development process is not entirely correct, because not every development is innovation, development or process cannot be measured qualitatively, and it is impossible to talk about innovation as a result of the process will not be launched on the market and consumer demand there as the final result of the innovative activity of the enterprise. Because such an interpretation does not meet the scientific and practical needs of economic systems, the resolution of the identified contradictions, perhaps for the demarcation of the terms “innovation” and “innovation process”, although these concepts are very closely linked.