Assesses managers′ understanding of the term “innovation” and introduces the changes in the nature of competition which have affected the traditional idea of innovation. Provides examples of these changes, e.g. ease of entry into most markets, wide availability and affordability of technological know‐how; transfer of technology and expense on a more global basis. Considers the full meaning of innovation in the 1990s by examining the “three dimensions of quality model”. Reports on the link between innovation and bottom‐line results and presents evidence from research studies. Finally decides what sustaining an innovation culture is dependent on and what the outcomes could be.
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