Exploring the Concept of Innovation

One of the most important strategies that have evolved during the past two decades is to use innovation to boost and stabilize a nation's economy. Innovation has long been considered as the source of creating value for business enterprises, but recently it has been recognised that if used strategically and systematically, it can benefit a whole nation as well as the world. The concept of innovation system has become the source of success and sustainability for enterprises and industries, and has gained tremendous acknowledgement around the globe, especially in the emerging economies. Describing the importance and role of innovation in the economic growth and stability of a country, the 21(st) Century Innovation Working Group has stated that, "Innovation transforms insight and technology into novel products, processes and services that create new value for stakeholders, drive economic growth and improve standards.of living"([1]). And Lundvall has pointed out that, "The growth of a nation depends upon its capacity to produce innovative and high-tech goods to be offered within and outside its territories"([2]). Keeping in view the increasing importance of innovation, this paper attempts to describe the concept of innovation and related aspects at the enterprise and the national levels through a brief literature review.