Researches need to be informed by existing knowledge in subject area. The literature review helps to identify, organize and to get basic theoretical information and knowledge to strengthen the research out puts. In this research the literature review focused on, innovation, and innovation value chain and knowledge management. As results of the review, existing gapes which need further research are identified.
2.2 Innovation value chain
2.2.1 Definitions and history of innovation concepts
In literature there are numerous definitions of the concept of innovations. The pioneering research in the field was done by Schumpeter in 1934.
He was the first author to recognize innovation as product, process and organizational changes. But as the authors suggestion the concept of innovation do not necessarily do derived from new and scientific discovers but may arise from existing technologies and their application in anew context Hana (2013). His idea and researches have been developed by a number of authors and scholars.
Based in different authors point of view the innovation of market and product are low when take of firms and the quality with price decreases that is take sale happened. According to (Nagasimha Balakrishna Kanagal 2015) purpose of innovation is for improving and increasing the delivery of superior meaning and superior value to the customer while making it relevant, different or new valuable from costumer’s will be the stand point. Innovation process is a way of new investigating things for companies or sectors as it leads the global competitive advantages to. (Dalia Gamal, Tarak Salah, Nerseen Eliryyes 2011).
According to (birkinshaw,2011) innovation is the life blood of any large organization. Innovation focuses on the five general forms including diversification of the existing pool of product and service; introduction of completely new items and developments of participation models (Attarnezhad 2013). Product, process, organizational/managerial and market innovations constitute the main body of innovation categories (Hjalager 2010) introduction of new products, new production methods, exploration of new markets, conquering of new sources of supply and new ways of organizing business.
The authors (Andersson 2016) suggest that Innovation is a new idea. It is more effective device or process, the ideation, development, and commercialization of substantially new products, services or businesses – facilitates the development of new sources of competitive advantage (detection 2013).
Introduction and diffusion of new knowledge, techniques and products that ensure resources efficiency and green growth (Wakeford ..at el 2017).