Technological innovation is an extended concept ofinnovation. While innovation is a rather well-defined concept, it has a broad meaning to many people, and especially numerous understanding in the academic and business world.[1]
Innovation refers to adding extra steps to developing new services and products in the marketplace or in the public that fulfill unaddressed needs or solve problems that were not in the past. Technological Innovation however focuses on the technological aspects of a product or service rather than covering the entire organizationbusiness model. It is important to clarify that Innovation is not only driven bytechnology, but can also be driven by various other factors, includingmarket demand, social andenvironmental factors, and process improvements.
Technological innovation is the process where an organization (or a group of people working outside a structured organization) embarks in a journey where the importance of technology as a source of innovation has been identified as acritical success factor for increased market competitiveness.[2] The wording "technological innovation" is preferred to "technology innovation". "Technology innovation" gives a sense of working on technology for the sake of technology. "Technological innovation" better reflects the business consideration of improvingbusiness value by working on technological aspects of the product or services. These advancements would show improvement for the business's that adapt to this new technology. Moreover, in a vast majority of products and services, there is not one unique technology at the heart of the system. It is the combination, integration, and interaction of differenttechnologies that make the product or service successful.
If the process of technological innovation is formalized (typically within an organization: a company, apublic body, athink tank, a university, etc.) it can be referred to astechnological innovation management (or TechnologyInnovation Management - TIM). The "management" aspect refers to the inputs, outputs and constraints a "manager" or team of "managers" are responsible to govern the process of technological innovation in a way that aligns with the company strategy. In a context where technological innovation is not to be guided along known paths within the organization, the wording and concept oftechnological innovation leadership is preferred. On many occasions, especially instart-ups and new ventures, technological innovation is performed in an unknown context. The boundaries and constraints of the technology at work are not precisely known. Hence it requires leaders and not managers to give the vision and coach the team to explore the unknown part of the technology.
Technological innovation will impact prices of stock in companies. This can be due to new inventions in technology which make it easier for jobs to be done in the market. Investors see bigger returns on investments of companies with new technology due to innovations that have changed the market. Although companies that can’t keep up with the pace of change and adapt todisruptive innovation often find themselves floundering.[3] With new innovations being added to companies value this in turn will create an increase in profits of the company thus increasing stock prices for the company.
The stock market is a way that companies can raise money for the company’s production or operations by selling shares of stock in the company.[4] With newly raised money, companies can invest that money into new advancements which will bring more profit's in the future.
Although companies do adopt technological innovations often, some decide to not which leads to major gaps between what is the new "normal" and what used to be "old fashioned". Innovations benefit companies but leave those who do not adapt to them become outpaced. Companies that do not respond to different market changes from innovation, tend to miss out on opportunities which could end upruining a company.[5]
Technological innovation:
How can a society plan and protect its future amid constantly developing technological innovations?[6]
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