In the ever-changing world, innovation is the only key which can sustain long-run growth of the country. More and more firms are realizing the importance of innovation to gain competitive advantage. Accordingly, they are engaging themselves in various innovative activities, ranging from manufacturing processes, product improvement, brand building initiatives to customer satisfaction. Today, business environment has become very dynamic with more demanding customers and intense market competition. To meet this, firms are creating new products, solutions and services that provide a radically better experience for the consumers.

Innovation is not only about technology, but is also about understanding and exploring untapped user needs that require to be addressed in an efficient manner. It must occur at every stage of a product or solution development and release cycle. Thus, managing innovation is fast becoming priority in a global business environment.

Firms which innovate tends to survive and grow to a greater extent. The most successful individuals, managers and team leaders in latest business world are the ones who are not only innovative in their own work, but who encourage and assist others to be innovative in every aspect of their work.

Some of the key innovation areas are: product development and improvement; manufacturing processes; creating entirely new set of products; etc. In area of supply chain management, innovations help in making the supply chain more responsive, flexible and efficient. Supply chain innovation can be used to reduce costs, offer better assortment of customer centric products, decreasing time to market and driving growth.

Innovation is the main idea in shaping corporate life and helping companies to adopt various strategic options. It helps to reduce total cost of production; increase income avenues; maintain efficient operating systems; etc. It enables to see potential acquisitions not only on cost basis, but also as a means of accelerating profitable top-line revenue growth and enhancing capabilities. It also expands R&D base of the country and brings latest technologies into the country. It also provides an edge in being able to enter new markets faster and deeper.

Thus, the term 'innovation' is rightly referred to as changes to products, services, processes or business models. To continue their growth and to attain newer heights, Indian firms need to recognise the importance of 'innovation' for maintaining their competitive edge and fuelling further growth. Innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc.