Critically examine the claim that THE key to being an innovative Essay

Critically examine the claim that THE key to being an innovative organisation is R & D more expenditure equals more innovation - Essay Example e constantly engaging in research and development in order to come up with new approaches of doing things, design new products for the market, acquire new market for the products and expand business capacity to meet the current and future market demand (United Nations, 2012, p. 11). Innovation is a role of all workers in an organization. In order for an organization to be competitive in the market, it has to promote and nurture a culture of creativity among the workers and provide the necessary resources to support innovation. The organizations should have the capacity to recognize the need for innovation and support the ideas that can lead to competence of the organizations. The ideas could be small or big and they follow a particular process. Innovation requires resources including time and finances (Mazzucato, 2013, p. 84). Organizations must be willing to devote the required resources in order to achieve the expected goals. They should engage in research and development in order to explore various approaches to improving products, processes or market and implement the new ideas as their core competences for future growth. Innovation may imply the organization developed their knowledge or acquired the knowledge from another organization. Irrespective of the method, the business, used to innovate, the organization has to incur some cost in order to gain that knowledge. Innovation is an entrepreneurial role of creating a new product or processes for the market. Entrepreneurs earn profit from their innovations by establishing a monopoly (Unit 1: Lecture 1). They acquire patent rights to limit other competitors from producing and selling similar products in the same market. However, the entrepreneurs cannot prohibit the entry of competitors in the market for a long. Competitors start offering similar products with those of the entrepreneur thus limiting the potential for expansion of the business. The entrepreneurs should develop a culture of innovation in order to