Technological Innovation – Definition, Examples, Types, and More

Technological Innovation Definition

Technological innovation is a type of innovation-related solely to technology. It does not include, for example, those new non-monetary incentives created to make employees more efficient. The management of science and technological innovation is part of a process at the scale of the entire society, systemic, dynamic, participatory, creative, open, and continuous.

It consisting of planning, organizing, executing, and controlling scientific and technological innovation activities. To help to satisfy the technical demands of an institutional, governmental, business fabric and society in general, through the use of functional, empirical or scientifically created mechanisms, operating methods, or suitably designed procedures.

It lies in the ability to identify needs not yet covered by the offer. Determine solution possibilities through existing or new technologies that can solve the identified problems. And, finally, it creates conditions for the invention to receive in the market favorably.

Examples of Technological Innovation

An example of technological innovation can be that of mobile banking. This has allowed users to make transactions such as transfers and payments for services from their cell phones.

Likewise, mobile banking represents another sales channel for financial institutions to offer products such as loans or savings alternatives.

Types of Technological Innovation

By encompassing such a large number of different elements and actions, technological innovation has different names based on two main characteristics: the degree of novelty and the nature of the innovation. The following types find in the function of these two ways of classifying technological innovations :

By Degree of Novelty

Radical Innovation

Radical innovations are those that represent a break from everything known up to that point. It can be through a new product never before seen on the market or new production processes in the industry. What characterizes radical innovations is that they are not a consequence of the evolution of something that already exists but instead that it is something wholly original and novel. This type of innovation allows companies to reach new markets by creating unknown products until the moment of their launch. This represents a very positive quantitative and qualitative leap that can directly impact the income statement of the company that created the new product.

Incremental Innovation

They are gradual changes that companies progressively implement to increase the functionality and benefits of the products or services offered. Although the impact of these innovations cannot significantly appreciate in isolation, when they occur continuously over time, they can represent an essential basis for progress for companies. Unlike radical innovation, incremental innovation offers better technologies, not on something new or original but existing ones. Based on the primitive characteristics, changes increase the technology and the benefits of a technological process or a product.

Innovation in Technological Systems

If we talk about innovation in technological systems, it can say that it is both radical innovations and incremental innovations. It consists of offering innovative business management systems or procedures as well as the organization of a company. They can base on an existing technological system or a completely new one.

Paradigm Shift

Paradigm changes occur beyond the technological and production systems and involve a transformation of preconceived ideas regarding them. The most significant paradigm changes can have been the industrial revolution and the digital age. They are the innovations that take the longest to emerge, but when they appear, they represent a total transformation of what we know until their appearance.

By its Nature

The innovations described include within the classification of innovations based on the degree of novelty they provide. However, by the nature of the invention, there are three main types: commercial, technological, and organizational.

• Commercial innovation refers to any change in a variable in the marketing of a product that involves a difference in how the product market.
• Technological innovation is very similar to technical process innovation.
• Organizational innovation base on introducing changes in the organization or in the direction under which a productive activity develops in a company.
• It is palpable that any company with aspirations to survive in the medium and long term must bet on introducing technological innovations in its organization, whatever the type. The benefits of innovating are mainly three: higher efficiency, higher productivity, and higher quality.
• These three qualities are worth betting on; otherwise, the survival of any organization that does not do so will be at significant risk.

Advantages and Disadvantages of Technological Innovation

Advances in technology or technological innovations offer better living conditions for society. As negative factors, worrying social issues arise, such as unemployment due to the replacement of man by the machine or pollution of the environment, which require continuous and strict control.

The technology considered advanced and recently invented bears the name of state-of-the-art technology. It characterizes by its high price and representing an innovation compared to the existing technologies.

Conclusion

Technological Innovation. Inventions or creations that present a novelty in meeting the needs of society, which, without the advancement of technology, would not exist. The set of scientific, technological, financial, and commercial activities introduces new knowledge, methodologies, procedures, or equipment for creating a new product or process and its subsequent insertion in the market to satisfy needs consider.

Also Read: Is A Reminder App A Necessity For Small Businesses?

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