The evolution of the INNOVATION's theory
theme 3
Innovation is mostly an economic category. As such, it represents the most general and essential characteristics, attributes, links and relations of creation and realization of innovations.
The terms "invention" and "innovation" are often identified, although there are differences between them. Today, an invention is understood as a new method, a new solution to a technical problem. From the moment an invention is accepted for diffusion, it obtains a new quality and becomes an innovation. The period of time between the appearance of an invention and its realization into an innovation is called the innovation lag. Thus, we can say that invention is the creation of a new concept, and innovation is the separation of the practical value of the invention and its transformation into a successfully sold product.

In the economic theories of the early schools, the term innovation was identified with industrial and agricultural inventions.
Let's look at the process of development and formation of the innovation's theory.
More about the school of Russian cyclism
The school of Russian cyclism has gained world recognition in the development of innovation theory. Followers of the school are such world-famous scientists as A.L. Chizhevsky, V.I. Vernadsky, M.I. Tugan-Baranovsky, A.A. Bogdanov, P. Sorokin, N.D. Kondratiev.

The definition of the role of innovations in the technical sphere in the cyclical nature of changes in macroeconomic indicators of business activity was formulated by N.D. Kondratiev. The author developed in the 20s of XX century the first concept of long-term fluctuations in the economy, which were named as Kondratiev's long waves.

N.D.Kondratiev connected the transition from cycle to cycle with the wave of inventions and innovations. Before the beginning of a big cycle at the very beginning of the cycle one can see significant changes in the life of society.
Kondratiev's cycles (K-cycles or K-waves) are periodic cycles of 45-60 years, showing regular periods of rise and fall of the world economic system.
More about J.A. Schumpeter's theory of innovation
The follower of N.D. Kondratiev was J.A. Schumpeter, a representative of the Austrian school, who introduced the term "innovation" (from Latin Innovatio - introduction of something new) as a new economic category. According to J. Schumpeter, the subject of innovation can be a product, production process, as well as an organization, provided that they are new and introduced.

It should be pointed out, Schumpeter defines entrepreneurship as a property independent of social or class identity, and the entrepreneur is the most prominent subject of innovation and is called an innovator.

In order for innovative entrepreneurs to get the means of production at their disposal, they must utilize bank credit. Thus banks, according to Schumpeter, are a special phenomenon of development which, acting on the name of the national economy, authorize the implementation of new production combinations. They act as the necessary mediators between the desire to innovate and the ability to do so.
Task. Which of the theories of innovation seemed most interesting to you? Write a short report on this theory. Record the result in the document by link.