Innovation is a dynamic change brought by entrepreneur by bringing new combinations of factors of production. Innovation by entrepreneur is must for development of an organisation. Entrepreneur can be an innovator in many ways.
They are:
(1) Introduction of a new product:
Entrepreneur through his dynamic skill and intelligence create new products by fulfilling innovation to commercialisation by embedding it in an environment where it did not exist previously.
(2) Introduction of a new method of production : By introducing new and latest technology an entrepreneur brings new life and energy in methods of production. Introduction of new technology, new machinery, scientific methods of production will save money and time of the organisation.
(3) Opening of a new market : An innovative idea with new products. It opens a new market which are not existing previously.
(4) Carrying out new forms of organisation for industry : An innovative entrepreneur is the one who discovers new methods and new materials. He utilises invention and discoveries in order to make new combinations. Thus, entrepreneur must be an innovator.
