Innovation: This may consist of, the introduction of a new product, a new method of production, opening up of a new market, conquest of a new source of supply of raw materials and carrying out of new organization of any industry like creation of a monopoly. According to Schumpeter, it is the introduction of a new product and the continual improvements in the existing ones that lead to development.
Role of innovator: Schumpeter assigns the role of innovators not to the capitalist but to the entrepreneur. An entrepreneur is the one who introduces something entirely new and is motivated by the joy of
References: 1. The Economics of Development and Planning: M.L Jhingan, 37th Edition.