Small-Scale Development of Product

Introduction

For the feasible growth and sustainability, all organizations require innovations and new products development. In 21^st century people have begun to recognize the value of innovation. Although innovation is highly complicated but it’s the core of every business strategy. Major complications in between the path of any innovation are- intense competition, the lack of clearness in market and short utility period of any product (Calantone et al., 2010). Besides all of these complications’ implantation of innovation in organization and its all processes and products are very necessary (Acs & Audretsch, 1988; DiBella, 1997). In every small or large businesses; innovation networks, market environment and product formation characteristics play a very important role in innovation of products (Karlsson & Olsson, 1998). In current period non innovative firms are growing very hardly as compare to small innovative firms. According to a case study of Germany, output growth of businesses was increased by different innovative strategies but it put a very negative impact on employment because of this step employment reduces very rapidly. As compare to Germany, UK and Irish were focused on more balanced development of small firms which includes increment in employment and productivity both by different innovation strategies (Roper, 1997). Variation in small firm’s innovation strategies is a very important aspect but it is still under research because of lack of data (De Jong & Vermeulen, 2006). Irrespective of all these aspects small firms are faces many barriers like shortage of technically qualified workers/expertise, low budget due to difficulty in attracting sponsors and high cost of regulatory consent (Freel, 2000).

Opening of new opportunities for market, initiative in marketing and new products development, all of these can only possible through innovation (Armstrong & Foley, 2003; Ulrich & Eppinger, 2011). Innovation can hold a firm’s control on the whole industry. New technology, unique products and new resource all of these can be an innovation. Achievement of new position which are unoccupied by opposition is also considered as an innovative exposure. New resource development is highly challenging subject for manager. Bringing beneficial value to any creativity and unique technology is the complete course of innovation management (Teece, 2000). Establishment of an effective idea from different new generating ideas is very challenging process because it requires results from different parts these parts are customers, suppliers, employees and rival companies. The chances of success for any innovation, depends on effective ideas and multiple point of views which are required in the process of development of products (Boyer & Verma, 2009). The whole innovation process is categorized into three parts: the effective idea for innovation, development of new products and its marketing. Thus, innovation has become an important part of business strategies because of some reasons which are advancement in productive manufacturing techniques, good marketing, develops loyalty in customers and maintain a positive brand image.