A prime example of innovation involved the explosive boom of Silicon Valley startups out of the Stanford Industrial Park.
In 1957, dissatisfied employees of Shockley Semiconductor, the company of Nobel laureate and co-inventor of the transistor William Shockley, left to form an independent firm, Fairchild Semiconductor.
Since then, hubs of innovation have sprung up globally with similar metonyms, including Silicon Alley encompassing New York City.
Another example involves business incubators – a phenomenon nurtured by governments around the world, close to knowledge clusters (mostly research-based) like universities or other Government Excellence Centres – which aim primarily to channel generated knowledge to applied innovation outcomes in order to stimulate regional or national economic growth.
whether an innovation is new to the firm, new to the market, new to the industry, or new to the world) and kind of innovation (i.e.
whether it is processor product-service system innovation).Over the next 20 years, this snowball process launched the momentous startup-company explosion of information-technology firms.Essentially, Silicon Valley began as 65 new enterprises born out of Shockley's eight former employees.With rapid advancements in transportation and communications over the past few decades, the old-world concepts of factor endowments and comparative advantage which focused on an area's unique inputs are outmoded for today's global economy.Economist Joseph Schumpeter (1883–1950), who contributed greatly to the study of innovation economics, argued that industries must incessantly revolutionize the economic structure from within, that is innovate with better or more effective processes and products, as well as market distribution, such as the connection from the craft shop to factory.as an innovation, in economics, management science, and other fields of practice and analysis, innovation is generally considered to be the result of a process that brings together various novel ideas in such a way that they affect society.In industrial economics, innovations are created and found Innovation also has an older historical meaning which is quite different.Specifically, innovation involves some combination of problem/opportunity identification, the introduction, adoption or modification of new ideas germane to organizational needs, the promotion of these ideas, and the practical implementation of these ideas.In business and in economics, innovation can become a catalyst for growth.A 2014 survey of literature on innovation found over 40 definitions.In an industrial survey of how the software industry defined innovation, the following definition given by Crossan and Apaydin was considered to be the most complete, which builds on the Organisation for Economic Co-operation and Development (OECD) manual's definition: Innovation is production or adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres; renewal and enlargement of products, services, and markets; development of new methods of production; and the establishment of new management systems. Two main dimensions of innovation were degree of novelty (patent) (i.e.