Innovation can take place in two ways:
i) innovation in the end-product (Product Innovation)
ii) innovation in the process (Process Innovation)
Product Innovation : involves creating a new/better/improved product/service which is more efficient, eco-friendly, sustainable, cost-effective, etc.
In this, only the outcome is “innovated”.
Process Innovation: in this, the end-product remains the same but the process of manufacturing is different. Innovating a new process for building the product which (process) is more efficient, sustainable, cost-effective, eco-friendly, etc.
In this, the outcome remains the same while the process is innovated.
Relation between GDP & Innovation.
There is direct correlation between increase in expenditure on R&D & increase in the GDP.
Hence, innovation is necessary for a healthy economy.
With Great Love,
Er. Amit Yadav