Innovation is the ultimate “corporate dream”. One about building new realities that are protected from competition thanks to unique factors included in the productive process, thus creating new markets and consumers only for us… This is one of the most important economic boosters nowadays and it usually tends to raise a lot of human and financial investment. Schumpeter wrote that innovation is one of the main drivers of long term economic growth (and, dare I say, development). Nowadays, the will to innovate is not only present in supply but also in demand – consumers (a word that will soon be out of the marketing jargon) are more and more used to being creative and innovative themselves and demand to be part of that movement.
Naturally, innovation is more noticeable when it’s connected to industry. It can be incremental (productivity increase, products competitive advantage, cost reduction, etc.) or structural (a different, unique, proprietary product). In a crisis environment, innovation makes more sense than ever but research and development budgets are commonly reduced in order to face the current financial and economic situation. There are, however, various innovation policies that can be carried out with relatively low investment. These policies are based on marketing tools that can direct existing brands and products to new niches, add new attributes to current products and create new communications channels, if they’re defined in compliance with consumer behavior trends and the evolution of society.
Last month’s trendwatching.com briefing about Innovation Insanity was about many topics already discussed here – statusphere, hyperlocal, infolust. Because these ideas are only meant to light your creative spark, they’re presented in a scattered way but there is some common ground. Firstly, because their strategic planning is based on consumer and society evolution. It has to do with the demand of generosity, skills development and emerging status fulfillment through product consumption (sustainable citizen, social and personal balance, etc.). It also has to do with what people get from content aggregation and localization, technological development and with the integration of consumers in the marketing and product development process. Most of those ideas come from quick communications decisions, directing existing products to new niches. These are marketing decisions – speed and agility, by the way, are essential marketing attributes to companies trying to get through the 21st century.
There are some Portuguese examples regarding industrial innovation. For instances, the “oon candlemaker”, a Portuguese invention that allows people to create scented candles with cooking oil. Its design and the company’s communications efforts pass on a sense of sophistication that may well lead the candlemaker to a spot in the kitchen or the living room right next to the Nespresso machine. Although Portugal has a number of patents produced annually rather low compared to other countries, there are many good examples of innovation to be implemented by SMEs and startups in the country.
(Published in Marketeer Magazine, August 2010)








