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Advanced Innovation & entrepreneurship

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  1. Introduction
  2. MODULE 1: CAPITAL, VALUE, AND ORGANIZATION

    Unit 1 Value Creation, the production results
    2 Topics
    |
    1 Quiz
  3. Unit 2 What is the capital and how is it build ?
    2 Topics
    |
    1 Quiz
  4. Unit 3 : Division and organisation of Labor
    3 Topics
    |
    1 Quiz
  5. Unit 4 : Capturing and Retaining Created Value
    2 Topics
    |
    1 Quiz
  6. Unit 5 : Value chains and their fragmentation, maximizing the value captured
    2 Topics
    |
    1 Quiz
  7. MODULE 2: INNOVATION AS A SOCIAL PROCESS
    Unit 6 : Adoption, a frontier between invention and innovation
    2 Topics
    |
    1 Quiz
  8. Unit 7 : Innovation as a social process
    2 Topics
    |
    1 Quiz
  9. Unit 8 : Location and Links in innovation
    3 Topics
    |
    1 Quiz
  10. Unit 9 : Innovation process between companies
    2 Topics
    |
    1 Quiz
  11. Unit 10 : The case of Knowledge industries
    3 Topics
    |
    1 Quiz
  12. Unit 11: Values typologie
    2 Topics
    |
    1 Quiz
  13. Unit 12 : Innovation as a process of value proposal
    3 Topics
    |
    1 Quiz
  14. MODULE 3: DIGITAL TRANSFORMATION, INTANGIBLE CAPITAL AND RESPONSIBILITY
    Unit 13 : Digital transformation
    2 Topics
    |
    1 Quiz
  15. Unit 14 : Intangible capital role in Innovation
    4 Topics
    |
    1 Quiz
  16. Unit 15 : Public investment generating positive externalities in service of innovation
    3 Topics
    |
    1 Quiz
  17. Unit 16 : Corporate social and environmental responsibility in an innovation context
    2 Topics
    |
    1 Quiz
  18. Unit 17 : Innovative management methods of companies
    2 Topics
    |
    1 Quiz
  19. Conclusion and References
    General Conclusion
  20. Bibliographic references
  21. Final Assessment
    1 Quiz
Lesson Progress
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Transcript

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Beyond Financial Profit

When a company says it creates value, is it speaking only of profit? In the first module, we were essentially interested in production—the mechanism of value creation—but without developing what value itself is.

Consider a fashion company that generates significant revenue but also chooses to use sustainable materials and support local initiatives. Can we say this company creates more value than another focused only on maximizing profit?

Definition and Multidimensionality of Value

Value can be defined as what is judged desirable, useful, or important in a given context. In economics, this notion extends far beyond the simple financial aspect.

Mazzucato (2018), in The Value of Everything, insists that not all economic activities necessarily create real value. Some merely redistribute or extract it, like certain financial or speculative operations.

Thus, when we speak of value creation, we must always ask: for whom, and what is the nature of this value?

Different Forms of Value

Economic or financial value: profit, profitability, return on investment. A company that optimizes its margins creates financial value for shareholders.

Customer value: the satisfaction a product or service brings relative to the cost it represents. “Perceived benefits” minus incurred costs.

Social value: the impact of economic activities on society. A company can create value by promoting professional integration, supporting local associations, or contributing to social cohesion.

Environmental value: contribution to nature preservation—reduction of CO₂ emissions, biodiversity protection, use of renewable resources.

Symbolic or intangible value: reputation, brand image, the trust that customers or partners grant the company. Some brands, like Patagonia or Tesla, possess an “aura” that attracts or repels customers and investors, even if their products are not the cheapest on the market.

Creating value thus goes far beyond simple financial profit. A company can create economic, social, environmental, and symbolic value.