Discuss the requirements of Innovation.

i) Economic demand
-People engage in innovation out of belief that the economic returns will be greater than its costs.
ii) Surplus capital
-Provides the necessary time and startup costs for implementing a new idea.
iii) Ability to assemble and invest capital.
iv) Mobile capital which is stable.
-Capital cannot serve unless it can move to potential innovator unless it can move to allow the various types of wealth to be created e.g title deeds – stability is provided by a rule of law.
v) Availability of growth- fostering social institutions which facilitate the speed of technological advancement.
vi) Ability and willingness to think and act creativity (Entrepreneurs) I,e the philosophical and psychological requirements.
vii) Geographical and other circumstantial causes such as ethical issues.
-Societies in which innovation is seen as a sinful or people are punished or are shunned to think differently than others are unlikely to experience innovation.
viii) The size of the firm.
-Large firms have the advantage of introducing innovation since they can afford it.
-They tend to attract more talents employees to advice on new ideas.

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sharon kalunda answered the question on April 16, 2019 at 12:19