The text deals with ideas on how to innovate in order to succeed in competition. Such innovation involves product innovation, technology innovation or change in management procedures. The text also mentions other useful sources and information.
Procedure innovation is the implementation of a new and significantly improved method of production or provision of services (including significant changes in technology, equipment and/or program equipment). Innovations are not smaller changes or improvements, increased production capacity or capacity for provision of services by adding manufacturing or logistical systems that are very similar to systems already in use, abandoning the usage of a certain procedure, simple renewal or extension of capital, changes based exclusively on changes in pricing of the elements involved, modifications, regular seasonal or cyclical changes, nor trading of new or significantly improved products.
Organizational innovation is the implementation of a new method of organising business practices of companies, the workplace, or external relationships. Innovations are not changes of business practices, organisation of the workplace or external relationships based on the organisation“s procedures that have already been used in the company, changes in the strategy of management, merger and acquisition, changes based exclusively on changes in the prices of the related elements, modifications, regular seasonal or cyclical changes, nor trading of new or significantly improved products.
Innovation is a positive, but also a negative quantitative or qualitative change that relates to the entrepreneurial environment. Depending on the subject of the changes, there are factual innovations which cover products or technologies, and management changes that relate to changed management approach.
An innovation process in a company spans across a broad range of activities that are implemented starting with the initial idea, through launching it into practice. Therefore, it also includes research and development, industrial and legal protection, introduction into production, and finally, implementation of innovation in practice.
We differentiate between reactive and proactive strategies. In the first case, an entrepreneur strives to satisfy customers and react to a competitive environment; the benefits are smaller than in the second – proactive – strategy. The objective is to come up with something new, find a competitive advantage and get the most potential customers.
Product innovation is the introduction of new or significantly improved products, technologies, and services to the market. Novelty or significant improvements relate to technical characteristics of the product, its components and used materials, the built-in software, utility value and other functional characteristics.
This type of innovation occurs when there is a new offer on the market that significantly increases productivity, decreases production cost, shortens production time or improves the quality of the product. On occasion, a company is forced to update current technological equipment in order to achieve higher performance.
Change in Management Procedures
The reason for this innovation is a change of the business environment or when the company grows or does not achieve the required performance and there are management problems; or, the competition might demonstrate better management procedures.
Research and development can be described as typical innovation resources. The sources of innovation can also be improvement suggestions – technical, production or operational improvements, as well as the solution of occupational health and safety and environmental issues the innovator is entitled to deal with.
Basic research is the experimental and theoretical work done in order to gain new knowledge on the basic principles of phenomena or observable facts that is not primarily focused on usage in practice.
Applied research is planned research or critical examination focused on gaining new knowledge and skills for development of new products, processes or services or for significant improvement of current products, procedures or services. Applied research includes creation of partial elements of complex systems needed for applied research, with the exception of prototypes.
Experimental development represents obtaining, connecting, forming and using current scientific, technological, business and other findings and skills with the purpose of creating plans and organising or proposing new, altered or improved products, processes, or services. It can also include other activities focused on defining concepts, planning and documentation of new products, procedures, and services. Such activities may include the creation of proposals, drawings, plans and other documentation provided they are not intended for business use.
A research organisation is an entity just like a university or a research institute, regardless of legal form or method of financing, the main purpose of which is to carry out basic research, applied research or experimental development and spread the results through education, publishing or transfer of technologies. All profits are invested back into such activities or spreading of their results or into education. Organisations that can exercise influence over such entities, such as shareholders or members have no preferential access to the research capacity of the entity or the research results created by this entity.
The Research and Development Council is the specialised and advisory body of the government of the Czech Republic established by Act No. 130/2002 Coll., on Support of Research and Development from public resources. In January 2008 it adopted the reform of research and development.
The following governmental and non-governmental institutions and web portals offer further information and useful services related to carrying out innovation, research and development.
- Academy of Sciences of the Czech Republic
- Technological Centre of the Academy of Sciences
- EU Structural Funds(in Czech language only)
- Information, contacts and innovation guidelines(in Czech language only)
- Official portal for business and export
- Public administration portal of the Czech Republic
- Investment and Business Development Agency
Developmental plans and programmes identify priorities and areas of development and the basic framework for support of the innovation process in businesses.
- EU Framework Programme for Creating the European Research Area (in Czech language only)
- National Research and Development Policy (in Czech language only)
There is the operational programme Enterprise and Innovation which is focused on supporting the development of a business environment and the implementation of research and development results into business practice.
- Operational Programme Enterprise and Innovation (in Czech language only)
The operational programme Research and Development for Innovation is focused on strengthening the research, development and pro-innovation potential of the Czech Republic, above all through colleges, research institutions and their cooperation with the private sector.
- Operational Programme Research and Development for Innovation(in Czech language only)
Personalised help and advice
The Enterprise Europe Network is an extensive network (with 600 host organisations and 4 000 full-time staff) providing information and advice to entrepreneurs through its local partners.
- Act on Support of Research and Development (No. 130/2002 Coll., as amended)(in Czech language only)
- Act on Public Research Institutions (No. 341/2005 Coll., as amended)(in Czech language only)
- Act on the Academy of Sciences of the Czech Republic (No.283/1992 Coll., as amended)(in Czech language only)
Document created in co-operation between Your Europe – Business (EU portal for companies) and BusinessInfo.cz.