Innovation is a dynamic change brought by an entrepreneur by bringing new combinations of factors of production. Innovation by the entrepreneur is a must for the development of an organization. An entrepreneur can be an innovator in many ways. They are :
(1) Introduction of a new product:
Entrepreneur through his dynamic skill and intelligence create new products by fulfilling innovation to commercialization by embedding it in an environment where it did not exist previously.
(2) Introduction of a new method of production:
By introducing new and latest technology an entrepreneur brings new life and energy in methods of production. The introduction of new technology, new machinery, scientific methods of production will save money and time for the organization.
(3) Opening of a new market:
An innovative entrepreneur creates and opens new avenues, new ideas with new products. It opens a new market which is not existing previously.
(4) Carrying out new forms of organization for industry:
An innovative entrepreneur is the one who discovers new methods and new materials. He utilizes inventions and discoveries in order to make new combinations.
Thus, the entrepreneur must be an innovator.
