Innovation and Entrepreneurship for Sustainable Forest Management „Innovation & Entrepreneurship“ – what is it? IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner

Main rules 1.Knowing = understanding. What counts is what you understand really better after this week, not what you can store & repeat 2.If something is unclear or difficult to understand: ask or challenge – that‘s how new theories & scientific advancement works (individually & as a science) 3.The basics of economic theories are simple. They only get complex & difficult when they try to more realistically represent a complex dynamic reality. 4.Rule 1 & 2 apply. BLACK HOLE THEORY BLACK HOLE IN BRAINS THEORY

1.Knowing = understanding. What counts is what you understand really better after the course, not what you can store & repeat 2.If something is unclear or difficult to understand: ask or challenge – that‘s how new theories & scientific advancement works (individually & as a science) 3.The basics of theories are usually simple. They only get complex & difficult when they try to better represent a complex dynamic reality. 4.Relating & testing theories on your own day-to-day behaviour is a good way of testing, challenging & learning. 5.Rule 1 & 2 apply.

Innovation and Entrepreneurship for Sustainable Forest Management „Innovation & Entrepreneurship“ – what is it? IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner

Change: societal, economic, environmental, technical

Wealth growth

Population 1960 Population 2050

-Change -Invention -Innovation -Innovation diffusion -Entrepreneurship Terms Austrian government change

-Change -Invention -Innovation -Innovation diffusion -Entrepreneurship Terms The invention of a new product or process occurs within what could be called the techno-scientific sphere and it can remain there forever. An invention is an object, process, or technique which displays an element of novelty. Inventions may be concepts, physical devices or any other set of things that facilitate an action.

Inventors

-Change -Invention -Innovation -Innovation diffusion -Entrepreneurship Terms Innovation = the introduction of something new An innovation is an invention that has been put into practice. Innovation occurs when someone uses an invention - or uses existing tools in a new way - to change how things work

Innovation  „Innovation is the doing of new things or the doing of things that are already being done in a new way… Innovation is a process by which new products and techniques are introduced into the economic system.“(Schumpeter 1947)  “the first commercialization of an idea” (Fagerberg 2004)  An innovation is the implementation of a new or significantly improved product, or process, a new marketing method, or a new organisational method in business practice, workplance organisation or external relations (OECD)  Innovation is an invention that has been successfully implementated and introduced in the market

Features of Innovation  Novelty: Innovation is something new  Function  Technic  Design (?)  Implementation: Innovation is introduced into market  Modification: A innovation should cause a change/improvement

Innovator  To be able to turn an invention into an innovation, a firm normally needs to combin e several types of knowledge, capabilities, skills and resources  An innovator is the person or organizational unit responsible for combining the factors necessary

Innovators

And this is not innovation  Ceasing to use a process, a marketing method or an organisation method, or to market a product  Simple capital replacement or extension  Changes resulting purely from factor prices  Customisation  Regular seasonal and other cyclical changes

-Change -Invention -Innovation -Innovation diffusion / adoption -Entrepreneurship Terms The spreading of innovations new ideas and technology through society

Diffusion of innovation  Everett Rogers: Diffusion of Innovations (1962)  „An innovation is an idea perceived as new by the individual. Diffusion is the process by which an innovation spreads… Adoption is the decision to continue full use of an innovation.”  5 Adopters‘ categories:  Innovators (2,5%)  Early adopters (13,5%)  Early majority (34%)  Late majority (34%)  Laggards (16%)

Diffusion  The spread of a new product or process throughout society or markets  Important process that enables an innovation to contribute to economic growth and welfare  Focus on adoption of innovations  Macro perspective  From a micro perspective any adopter of a new product/technology is an innovator

Innovation Diffusion

-Change -Invention -Innovation -Innovation diffusion / adoption -Entrepreneurship Terms Entrepreneurship is the practice of starting new organizations, particularly new businesses generally in response to identified opportunities.

Entrepreneurship  “Entrepreneurial spirit” to innovate (Schumpeter)  Entrepreneurship as risk taking (Knight, Drucker, Hart, Stevenson and Dial)  An entrepreneur is a person who undertakes and operates a new enterprise or venture, and assumes some accountability for the inherent risks  Entrepreneurship = starting a new businesses

Innovation and Entrepreneurship for Sustainable Forest Management „Innovation & Entrepreneurship“ – what is it? IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner