This publication deals with the conceptualization of innovation as one of the key capabilities of the organisation.Author propose that the innovation management practices should appropriate the organisational capabilities to achieve competitive advantage in the business environment.

In this book, the concepts of innovation and dynamic capabilities are thoroughly studied and evolved into a new conceptualization for integration. Since the nature of business organizations is to strive for achievement of competitive advantage relentlessly, it is imperative for business organizations to develop suitable capabilities and, thus, leverage them to gain an advantageous edge in the business environment. The dynamic capabilities that are built and deployed by firms to cope with changing business conditions help the firms to adapt to the demand of the situation through resource mobilization and effective management. Dynamic capabilities usually appear in varied breadth and span and culminate into hierarchical stages. The current century business slogan “Innovation” is adapted and considered by every business firm. Development and maintenance of innovation is being perceived as a critical organizational function by managers. It is unanimously agreed upon by senior managers that there is a need for the building of organizational capabilities to promote innovation for a competitive advantage and to get the most benefit from such innovations in changing scenarios. This requires the integration of dynamic capabilities and innovation management disciplines for building innovation management capabilities in organizations.

Academic finance has had a remarkable impact on many financial services. Yet long-term investors have received curiously little guidance from academic financial economists. Mean-variance analysis, developed almost fifty years ago, has provided a basic paradigm for portfolio choice. This approach usefully emphasizes the ability of diversification to reduce risk, but it ignores several critically important factors. Most notably, the analysis is static; it assumes that investors care only about risks to wealth one period ahead. However, many investors—-both individuals and institutions such as charitable foundations or universities—-seek to finance a stream of consumption over a long lifetime. In addition, mean-variance analysis treats financial wealth in isolation from income. Long-term investors typically receive a stream of income and use it, along with financial wealth, to support their consumption. At the theoretical level, it is well understood that the solution to a long-term portfolio choice problem can be very different from the solution to a short-term problem. Long-term investors care about intertemporal shocks to investment opportunities and labor income as well as shocks to wealth itself, and they may use financial assets to hedge their intertemporal risks. This should be important in practice because there is a great deal of empirical evidence that investment opportunities—-both interest rates and risk premia on bonds and stocks—-vary through time. Yet this insight has had little influence on investment practice because it is hard to solve for optimal portfolios in intertemporal models. This book seeks to develop the intertemporal approach into an empirical paradigm that can compete with the standard mean-variance analysis. The book shows that long-term inflation-indexed bonds are the riskless asset for long-term investors, it explains the conditions under which stocks are safer assets for long-term than for short-term investors, and it shows how labor income influences portfolio choice. These results shed new light on the rules of thumb used by financial planners. The book explains recent advances in both analytical and numerical methods, and shows how they can be used to understand the portfolio choice problems of long-term investors.