To do so requires a certain synergy between strategy and innovation Essay

To do so requires a certain synergy between strategy and innovation. Clarify the link between 'strategy' and 'innovation'. Also explain how a proper balance can be achieved between strategy and innovation - Essay Example This can also be considered as the prime barrier to sustainable value differentiation. This is also one of the prime objective as well as observation point of the current research study. Literature on innovation has claimed that innovation can be considered as one of the crucial success for the survival and growth of any firm. It has also been proportionally related to sustainable and competitive advantage to any company. Despite the presence of various definition and concepts on innovation, researchers have not been able to conclude one single definition for innovation. According to Vyas (2009), five different expression of innovation can be represented as follows; According to Therrien, et al. (2011), innovation can be described as a complex procedure related to processes and production functions. Here, companies try to build and acquire unique technological, strategic and marketing competence. These competencies can be acquired through resources and capabilities possessed by the organisation. Another important factor is transformation of these resources into distinctive innovation by innovation capabilities. At an organisational level, innovation represents the propensity and receptivity of the firm to establish and create new ideas leading to development as well as launch of new services and products. According to OECD and Eurostat (2005), Innovation is described as â€Å"implementation of a new or significantly improved product (good or service), process, a new marketing technique or a new organisational method in business practice, workplace organisation or external relations.† From the above definition it is clear that innovation in this contemporary business and economic environment is not confined to a simple change in the service or product or brand extension to a new market, but can spread across various facets of an organisation including operations, logistics, planning