This includes innovation in the level of product, process and / or the institution”. We also know that innovations occur in businesses, when ideas are applied to meet the needs and expectations of the customers. It may be new needs, or hitherto unarticulated needs, or existing needs met in unique ways. Innovations are also driven sometimes by stringent rules & regulations. 12.
There is a debate whether financial innovations should be regulated. Whether the innovators and entrepreneurs should be largely left alone, or whether public policy authorities should be actively involved in regulating those. 13. Innovations bring in positive changes in efficiency, productivity, quality, competitiveness, and market share, among other factors. However, as innovations usually result in paradigm shifts, they are typically disruptive.