Technological Innovation, Types and Main Characteristics

What Does Technological Innovation Mean?

Technological innovation refers to the creation of a new product or service always aimed at consumers. In other words, there is innovation when companies present new elements on the market or, failing that, improve existing ones.

Although this innovation is aim at the commercialization of the product or service, it can also relate to the company’s production processes. Ultimately, innovation is about change within the industry.

Despite being called technological innovation, it not only caters to modifications within technologies. But also changes in many other sectors that are also important within the company. We refer to scientific, financial, and commercial activities.

 This innovation aims to offer new products and services in the market (whether local, national, or international). It also affects the creation of new production processes and new methods to organize the company and manage it. Although the word innovation focuses on novelty, it is also related to the improvement of what already exists, be it services, products, or other systems.

The Types of Technological Innovation

Technological innovation is a concept that encompasses a large number of elements and actions, but depending on the specific task carried out, we will name it one way or another. In this sense, we can differentiate four types of technological innovation.

 First of all, we will talk about the radical type. As its name indicates, it is the innovations that allow us to reach new markets, although they can also be industries or other sectors where we can carry out any activity. Typically, radical innovations carry out in public administration, the service sector, or cultural matters.

On the other hand, we find incremental technological innovations, which are more progressive, since this time, instead of opening new fields, improving technological processes is always depend on their primitive characteristics. It is, therefore, an innovation to offer better technologies, but not to create new ones.

Finally, we can find two other types of changes. On the one hand in technological systems and on the other in paradigms. Regarding the former, it said that they encompass both radical and incremental innovations, although they also include innovations about the organization systems of the company.

And as for paradigms, it should be mentioned that it is the change that occurs in preconceived ideas regarding technological and production systems. In other words, a change in the paradigm would be an industrial revolution, for example.

Characteristics of Innovative Companies

For a company to achieve success, it must carry out technological innovations from time to time to adapt to the new, more times, and the needs that arise in society. Any industry that wants to introduce innovation to respond to three essential characteristics. We are talking about efficiency, competitiveness, and quality.

By having these three aspects, any company can create or improve the products or services it offers. In addition to economically profiting from the investment that carries out by increasing their sales. Professionals who have completed specialized studies such as a master’s degree in innovation have special relevance in this. From which all the necessary knowledge to obtain.

 Of course, it is essential to detect possible improvements that carry out in the future in the face of consumer needs and the company’s production processes.

In short, an innovative company must be able to create or renew.  New products, services, and even the production techniques it uses. Similarly, it also has to make changes in the company’s organizational system and modify the requirements.