Innovation As A Strategy For Globalization

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Innovation as a strategy for globalization

Globalization is a dynamic process, of great growth that has generated important changes in economic and commercial scenarios, promoting the interdependence of countries and therefore of markets, so that business units must recognize the importance of implementing strategies thatThey allow them to emerge and achieve leadership, being the main mechanism innovation. Which, since ancient times has been considered one of the most indispensable tools for the internationalization of companies, since, being a strategic factor, it allows to reach those segments or niches of markets that have been little explored or that have never beenstudied.

According to Schumpeter (1935), innovation is “the introduction of a new product for consumers or of higher quality than the previous ones, the introduction of new production methods for a sector of the industry, the opening of new markets, the use ofnew sources of supply, or the introduction of new ways to compete that lead to a redefinition of the industry ”. This author popularized the idea of "creative destruction": reference that innovative processes ended with old ways of doing things and introducing new and superior paradigms, more productive, eliminating pre -existing in a constant competitive process.

Therefore, innovation should be understood as a continuous effort that is not only focused or related to the goods and services that are produced, but is related to the entire value chain of the companies, understanding from their structure andIts processes, until its form of commercialization, in this way, is defined by Anderson, Potocnik and Zhou (2014), innovation covers all the operations of the company, combining the technical, financial, commercial and administrative capacities, allowing thelaunch to the market of new and improved products or processes that make firms more competitive.

Subsequently Ferrás, X. (2014), explained that "innovating is successfully exploiting new ideas or new knowledge, assuming more risk than competitors, to achieve a superior competitive position". When looking at innovation as a competitive strategy that improves positioning, it is inferred that this tool is the ability of organizations to develop goods and services more efficiently and efficiently, at a lower cost, combining the use of talent skillshuman and technologies, to capture the interest of consumers in the national and international market, thanks to the introduction of innate or never seen products.

Therefore, it should be noted that to achieve high levels of innovation and competitiveness, organizations must strengthen their internal skills, assign resources and investment for research and development activities, in order to train their staff to make them generatorsof ideas;The main objective must be focused on creating an innovative culture that extends, flows and is accepted by all organizational levels.

In addition, constant surveillance of the environment and technological advances must be carried out, in order for the company to foresee, evolve and adapt rapidThis, organizations must make modifications of one or more aspects of it, which aim to create new values that meet needs, that allow expanding and generating a better market positioning.

Now, it is essential to note that according to Benítez, J.AND. (2017), many years ago, the business policy of the vast majority of nations did not focus on conquering the world;but in massifying large amounts of money within their countries;Without thinking, in accessing the immense global market and rivaling other companies that were on the other side of their peripheries.

Globally, tariffs were prohibitive and businessmen focused on satisfying the needs of buyers of their own states, without a doubt, the division of the world into isolated fragments negatively conditioned the mentalities of entrepreneurs who considered great entrepreneursAnd of the possible potential clients that existed in the international market.

However, it is conducive to add that for a long time, this situation has undergone significant and relevant changes. Given that, the international economy at the end of the previous century, evolved considerably, adopting a series of factors that imply the notion of economic internationalization among which, the progress of direct investment abroad, the progress of direct investment, theInnovation in processes, products and services, the constant international transfer of technology, the progressive increase in international capital movements and growing international cooperation.

Currently, the international and business economic environment is more dynamic and global;This according to Benítez (2017), is reflected in the rise that world trade had in the last decades of the twentieth century, which brought with it the increase in direct foreign investment, often supported on the added value that companies have. This makes it clear that the main objective of an entity when internationalizing must be to obtain advantages that allow it to overcome and be better than the competition;So the great decisions about what and in which markets start, how to penetrate them, the class of organization to be adopted in that place, are judgments that require an exhaustive analysis of a strategic nature, which includes innovation as an additional plus,to help impact a new scenario. 

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