Innovation economics vs. conventional economics

In Agribusiness, Agricultural Entrepreneurship, Innovation on March 22, 2009 at 1:09 pm

This is what it’s all about: shifting from commodity to value-added and from value-added to continuous innovation.

There’s a great discussion of this topic at Twin Cities Daily Planet.

There’s also a link to an article from Business Week published last September about how America needs to innovate its way out of the current mess.

It’s important to remember here that research and development (R&D) isn’t enough to guarantee success. And invention is NOT innovation.

Innovation is when you create something that consumers will pay you for at a profitable price. Invention is when you create something. Much of the R&D we do is focused on invention. And on getting a patent. That’s a broken model.

For us to be successful, we have to concern ourselves solely with producing products and services that fill a gap in the market. That requires as much work outside the laboratory as in it. There is a business side of innovation that is every bit as important as all the scientific research we’ve been funding for years.


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