THE CONCEPTUALIZATION OF VARIOUS ASPECTS OF INNOVATION AND ITS RELEVANCE WITH SMES

This paper is an effort to conceptualize different aspects of innovation. The study of many pertinent papers to this topic has helped in understanding the importance of innovation small and medium enterprises. The different sources of idea generation and innovation are also discussed in light of the previous work done on innovation. During the study the factors which effect innovation are discussed. In this review work the four different perspectives from which innovation can be studied are discussed to be individual, organization, networking for innovation and finally, the presently popular System of Innovation approach which focuses on the mutual interactions of economic agents. The role of government in making innovation work is discussed and is felt that the National Innovation initiatives offer chances for economies to grow and prosper as innovation is one big mean of achieving economic prosperity. The barriers of innovation are found to be the lack of resources, lack of innovation idea generation, lack of technical knowledge of human capital. Lack of judicial and enforcement system, lack of Collaborative networks and inefficiencies of internal R&D.