Routledge Dictionary of Economics, Second Edition
The application of an INVENTION to a process of production or the introduction of a new product. A method of measuring an innovation is by estimating the extent to which an industry uses the new process or product.
Innovations occur more in concentrated industries as PRODUCT DIFFERENTIATION, necessitating frequent product changes, is a major market strategy of OLIGOPOLIES.
See also: diffusion rate; invention; research and development
References
Freeman, C. (1982) The Economics of Industrial Innovation, 2nd edn, London: Pinter.
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