INNOVATION AS A FACTOR OF ENTREPRENEURSHIP DEVELOPMENT WITH A SPECIAL FOCUS ON ISRAEL AND DISRUPTIVE INNOVATIONS

Abstract

The subject of this paper are innovations, which play a
crucial role in the development of entrepreneurship in the modern
world. Sometimes it is enough for a company to make some important
or even incremental innovation and to gain a market and competitive
advantage. But sometimes, as in the case of the Finnish mobile phone
manufacturer - Nokia, it is enough not to respond quickly enough
before the emergence of a disruptive innovation and to lose 92% of the
market as a result. Companies that have an environmental change
rate faster than the rate of change of the company itself, i.e., those that
implement innovations more slowly than the environment changes, are
first doomed to lag behind others, and then also to become
marginalized and eventually to disappear and be completely shut
down. The importance of this paper is the innovation factor which
remains paramount to the advancement of entrepreneurship, and
whether it will be executed and driven in one way or another, by a
government incentive or by the booming private sector, is irrelevant
after all. China does this by direct government investment in
innovation and innovative technologies, while in the US and to a
lesser extent in Israel, it is happening in the free market. The countries
of Scandinavia, Switzerland, Japan, South Korea and Singapore, as
well as the “start-up nation”, Israel, have a direct proportion of their
GDP per capita and innovation index. This all tells us how important
it is to support innovation. The induction, deduction, analysis,
synthesis and, above all, desk research methods have been used for
producing this paper.