ABSTRACT
Innovation and change are highly-valued components of modern industrial societies. The argument that innovation can and should be so fostered is put especially strongly in those societies which have experienced relatively low rates of economic growth, relatively high unemployment and inflation and/or international payments deficits. The Advisory Council for Applied Research and Development (ACARD) which advises ministers on the use of technology has stated unequivocally that 'innovation must be at the heart of any improvement in the performance of British manufacturing industry'. The neoclassical approach to economic policy, with its reliance upon the competitive model of market behaviour, actually obviates the need for entrepreneurship of this kind by assuming that the decision-maker has complete knowledge of a static market situation. Robertson has provided a terminology for the various types of new product in terms of their differential effects upon consumption behaviour. Abernathy and Utter back observe that radical innovation is usually fostered by small, technically-progressive productive units.
