Joseph A. Schumpeter firstly said about entrepreneurial innovations in his book “Theory of Economic Development”. According to Schumpeter, innovations mean “new combination of production”. Innovative Entrepreneur is an individual who has the ability to undertake to create innovative products according to the changing demands of the market.
It’s clear that innovation and entrepreneurship are strongly linked; sometimes the terms are even used interchangeably. But, as two distinct yet interrelated concepts, it can be difficult to identify the exact relationship between them. Entrepreneurial innovations are the versatile procedure that an entrepreneur or team of entrepreneurs engages in to attempt to bring innovative and potentially disruptive new products and technologies to market.
However, entrepreneurial innovations may occur in any one of the following five forms:
Introduction of a new product: The introduction of a new product in the market is one kind of entrepreneurial innovations.
The instituting of new production technology: The instituting of a new technology in production which is not yet tested by anyone is also one kind of entrepreneurial innovations.
The opening of a new market: The opening of a new market into which the specific product has not previously entered, is also one form of entrepreneurial innovations.
The discovery of a new source of raw material: The discovery of a new source of supply of raw material is another form of entrepreneurial innovations.
The carrying out of a new form of organization: The carrying out of the new form of organization of any industry by creating a monopoly position is also another form of entrepreneurial innovations.
Schumpeter, made a distinction between an inventor and innovator. An inventor is one who discovers new methods and new materials. And, an innovator utilizes inventions and discoveries in order to make new combinations.