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Innovation and productivity are two interrelated category which in their extention are connected to the value of resources in production sector and change and development as well.
The volume of huge investment and
utilization of wealth will not necessarily lead to their Increase unless optimal utilization of resourcrs and potentialities, specifically the effective and efficient uses of human resources, along with Innovation and creativity to be taken place.
The interaction of innovation and productivity has always been one of the prime importance for management experts.
The accomplishment of innovative strategy is due to the instrument or methods of innovation. Some of the methods through which the strategy would he materialized are, innovation through employees, innovation through clients and innovation through culture, Innovation through leadership, and Innovation through Organization.
In this article the strategic management process of innovation and its execution (implementation) methods have been described and their preventive factors in the preliminary phase of development of innovation is been mentioned. The concluding part refers to the necessary prerequisite of productivity increase in organization under the perspective of focus on Research & Development (R & D) on one hand and development of creativity and potentiality of employees through small groups, quality Circles, and consultation mechanisms on the other.