CHAPTER 5: CREATIVITY AND INNOVATION

Opportunity Identification:
The central domain of entrepreneurship
One of the primary challenges within the domain of entrepreneurship research
SOURCES OF INNOVATIVE IDEAS
A. Trends
Shifts in the paradigm (or thinking of the major population)
Societal Trends: aging demographics, health and fitness growth, senior living
Technology Trends: mobile (cell phone) technology, e-commerce, Internet advances
Economic Trends: higher disposable income, dual wage-earner families, performance
Government Trends: increased regulations, petroleum prices, terrorism
B. Unexpected Occurrences
Unanticipated or unplanned successes or failures that often prove to be a major innovative
surprise to everyone.
C. Incongruities
Occur when a gap or difference exists between expectations and reality.
D. Process Needs
An answer to a particular need is required. Venture capitalists often refer to these needs as pain
that exists in the marketplacethe entrepreneur must recognize an innovative solution, pain
killer.
E. Industry and Market Changes
Changes in structure, design or definition.
F. Demographic Changes
Trend changes in population, age, education, occupations, geographic locations and similar
factors.
G. Perceptual Changes
Changes that occur in peoples interpretation of facts and concepts. Intangible but meaningful.
H. Knowledge-Based Concepts
The basis for the creation or development of something brand new.
Creativity: the generation of ideas that results in the improved efficiency of effectiveness of a system.
Process- goal-oriented; designed to attain a solution to a problem
People-