Understanding innovation. 

Understanding innovation. 

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



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