The intense competition resorted to by leading companies in America, Japan, S Korea and a few others to not only get new customers but also protect their market share is what fuels innovation. It leads to creation of new products and services which attract global demand. The recently launched innovative product iPhone 5 booked over two million online pre-orders in the first twenty four hours.
In recent past products from Apple, Samsung, Nokia, Blackberry and services like Google, Facebook,Twitter, MySpace etc have revolutionised the markets like never before. These are out and out innovative products which have originated in the mindof a person and then gots supported by venture capitalists. They have created demand for ideas which did not exist and were not even thought to be in the realm of reality.
Why is it that innovation occurs in such select countries only and is not widespread as one would like it to be. Perhaps the entire society has to attain a particular level before it can start supporting innovation.
Freedom of thought and ability to take risks to see one's ideas convert into reality are two important ingredients for nourishing innovation.The innovator has to believe in his idea so passionately that he starts living it. Failure is not demeaning. The satisfaction of having tried and not succeded is far more satisfying than having not tried at all. The innovator does not look for a comfortable life till he innovates successfully.
The innovator makes his own decisions. In the Indian context the parents keep deciding for the child and always are seeking a risk free environment for him to lead his life. Every step
The government is a major fund provider for R& D activities in India its through various laboratories and organisations. But since when have bureaucratically run organisations produced innovations. A young person joins as a promising scientist and soon gets converted intoa pen pushing 'bureaucrat' and keeps getting time bound promotions and retires as a highly paid executive.
Indian industries also by and large do not spend any amounts on creating new and innovative products. When sales are good and growing, why divert funds for innovation activity. Acquiring innovation is far cheaper than doing it. A wise economic choice.
One of the main and perhaps the most important reason for innovation is that the firm's survival depends upon it. Imagine the fate of Apple or Samsung or Micrsoft or Sony or Nokia if they stop innovating. They would become history very soon.
In India's risk free culture, is there any firm whose survival depends on self financed innovation? When in trouble they ill go out int the international market and acquire some existing innovative product's manufacturing process and make money. Nothing wrong but looking to our size, it is high time we should also be giving some innovative products to the world and make it a still better place to live in.