Organisations innovate by undertaking activities aimed at the discovery and successful commercialization of new products, processes, services, technologies or operating methods. Innovation is one of the ways in which organisations develop the capacity through learning to enact environmental and internal dynamics in order to sustain their survival chances, and to fulfil their social functions. Innovation and learning are twin concepts. Innovation is either doing something new, or it is doing existing activities in new ways. In this sense innovation entails learning, because both resources, and knowledge and competence more specifically must be developed further in order to be able to perform the new tasks, or to perform existing tasks in new ways.
The rationale for this specific focus on innovation and learning in the broad, fragmented research area of innovation comes from recent insights about its role in modern societies. Economic growth and social welfare are no longer considered to be a product of only the labour and capital in Cobb-Douglas production functions.
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