February 2016
Beginner to intermediate
500 pages
33h 40m
English
Content preview from Managerial Economics and Strategy, 2/eBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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5.5 Innovation
Innovation—a new idea, device, or method—affects markets in many ways. Over the past century, new product innovations such as antibiotics, television, jet aircraft, personal computers, and the Internet have transformed the way we live and do business.
Process innovations, which improve the method of production for existing products to increase output, occur much more frequently than new product innovations. For example, the life-saving innovations in the Mini-Case “Malthus and the Green Revolution” include process innovations such as irrigation, expanded use of fertilizers, and optimal crop rotation that greatly increased food production.
Organizational innovations—new ways of organizing firms—also increase output. For example, ...
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