ABSTRACT
Innovation is the embodiment of an invention in the productive process and is, as such, a crucial step in economic change. Research and development activities have potentially positive effects on the output of goods and services, but it is not until a new process is actually undertaken, or a new product introduced, that this potential is realized. The risks involved in selling a new process or product can to some extent be reduced by carrying out product and market tests, in order to assess more clearly the chances of acceptance. Innovation is the crucial link between research and development activity, and the sale of new products, or of products produced using new processes. A radical innovation will affect most branches of a company from research and development through design to changes in production processes—and perhaps investment in new plants, which may imply some change in the skill requirements of various tasks.
