Inventions and innovations: Does stage of development matter in assessments of market attractiveness?
The purpose of this study is to determine whether market attractiveness is affected by the product's developmental stage-specifically, invention vs. innovation. Two databases were combined for this study to assess prototype or market-ready products (innovations) and ideas submitted by inventors and manufacturers (inventions). On average, invention stage products were more attractive to evaluators than were innovation stage products; however, one critical factor - the ability to create a new venture from the product - was significantly higher for innovations. In addition, overall market readiness was on average more than 10 percent higher for innovation stage products than those at the invention stage. Stepwise regression results indicate that stage of development and new venture likelihood are more critical than other factors in deciding the market viability of a product.
Jones, Stephen C., Tami L. Knotts, and Gerald G. Udell. "Inventions and Innovations: Does Stage of Development Matter in Assessments of Market Attractiveness?." Academy of Entrepreneurship Journal 17, no. 1 (2011): 37-46.
Academy of Entrepreneurship Journal