ABSTRACT
This chapter presents a general description of the innovation process in the private sector. Products have been found to follow a life cycle which proceeds from introduction in the market through a period of rapid growth, leveling off as the product reaches maturity, and then decline. The private sector contribution to the total Research and development expenditure rose from 42 percent in 1963 to 61 percent in 1973. Even with the commitment of large sums of money to the development of new products, the failure rate of newly introduced products is high. Effective innovation requires both engineering and marketing expertise. The innovation process involves a large commitment in numbers of personnel from a variety of fields. Substantial input is necessary from product researchers, production specialists, marketing specialists, and financial analysts. The initial stage in the innovation process is generally identified as “exploration” or “idea generation.”
