Final answer:
The determination of whether a new idea, practice, or product is classified as an innovation depends on how the potential market perceives it, as it must be adopted and valued by this market to be considered a true innovation. Intellectual Property Rights safeguard innovator's works and offer an incentive for continuous innovation.
Step-by-step explanation:
Whether or not a new idea, practice, or product is an innovation is determined by the perception of the potential market. Innovation involves creating new technology, products, or processes that change how people live and work. It includes transformative inventions like cellular phones, Wikipedia, or new business management strategies. It's driven by the desire of firms like Samsung to earn higher profits and gain a competitive edge through the relentless pursuit of new innovation.
The diffusion of innovation, where ideas transfer from culture to culture and encourage new social practices, is necessary for an innovation to spread beyond its earliest adopters to a wider audience. Innovations must be adopted and appreciated by the potential market; otherwise, they cannot be deemed successful innovations regardless of the technology they encompass.
Intellectual Property Rights play a crucial role in ensuring that innovators can benefit from their work. These rights include patents, which protect the investment in research and development by allowing a temporary monopoly on new inventions, thereby providing an incentive for the creation of innovation. Thus, a key factor in identifying an innovation lies in its ability to be protected and monetized, signaling its potential market viability and adoption.