Innovation is a decisive advantage in international competition today. Competitiveness rests on its capacity to innovate and to ameliorate products continuously. Innovation contributes today to assure a significant and lasting competitive advantage for the firm but it is a complex process to be controlled.
Its modern comprehension is defined as the economic emphasizing within the firm of creation. They differentiate habitually the innovation of product of the innovation of process. The first one consists for a business company to put on the market new products while the second rests on the technical improvement of the processes of production or the methods of management.
Innovation constitutes an opportunity of new growth then for the firm provided that process is in the system of management.
At first, we shall give a more definite definition of innovation. Then in a second party we shall explain how innovation ameliorates the competitiveness of the firm. Finally, we shall speak about the management of the innovation in the firm and about its difficulties.
A) Main definitions
Innovation is one of the main means to acquire a competitive and performance advantage by meeting needs of the market. To innovate, it is to create new products and to develop existent products, but also, to optimize his system of production, to adopt the last existent technologies of basic research as its research and development department.
Innovation can therefore define itself in most cases as the act which would consist in allocating a new capacity in means to create wealth. According to Schumpeter, it consists of factor new combination of production.
However innovations are various and are not the same largeness. They differentiate incremental innovations of radical innovations. In effect an innovation is said incremental when it does not change the nature of the product or actual service. For instance, a washing washes whiter, a car