Process innovation plays a vital role in making Innovation to succeed, by improving quality and consuming fewer resources to produce. The addition and enhancement of process features lead to improving the effectiveness and efficiency of operation. It leads to lowering wastage, improving accuracy, and also lowering the demand for inputs. One of the strategies of process innovation has been to keep delegating roles from human to machine leading to increasing automation and usage of robotics. As a matter of fact, increasing the role of intellectual assets or ideas in the form of process features leads to reducing the input demand and wastage.
Although process innovation reduces labor demand, it has been vital for making products better and also less costly to produce. Moreover, process innovation also leads to reducing the complexity of making products. This effect has been the underpinning of the creation of demand for low-skilled labor of developing countries in the global value chain of manufacturing.
