Innovation

Definition and Types of Innovation

• Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services.
• ISO TC 279 in the standard ISO 56000:2020 defines innovation as a new or changed entity, realizing or redistributing value.
• Surveys of the literature on innovation have found a variety of definitions, with over 60 definitions found in different scientific papers.
• In a study of how the software industry considers innovation, Crossan and Apaydin defined it as the production or adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres.
• American sociologist Everett Rogers defined innovation as an idea, practice, or object that is perceived as new by an individual or other unit of adoption.
• Innovation is distinguished from creativity by its emphasis on the implementation of creative ideas in an economic setting.
• Creativity involves the production of novel and useful ideas by individuals or small groups, while innovation involves the successful implementation of these ideas within an organization.
• Innovation is the specific function of entrepreneurship, whether in an existing business, a public service institution, or a new venture.
• Workplace creativity concerns the cognitive and behavioral processes applied when attempting to generate novel ideas, while workplace innovation concerns the processes applied when attempting to implement new ideas.
• Peter Drucker stated that innovation is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth.
• Several frameworks have been proposed for defining types of innovation.
• Sustaining innovation refers to the improvement of a product or service based on the known needs of current customers.
• Disruptive innovation refers to the process by which a new product or service creates a new market, eventually displacing established competitors.
• Disruptive innovations are critical to long-term success in business, according to Clayton Christensen.
• Foundational technology has the potential to create new foundations for global technology systems over the longer term, leading to waves of technological and institutional change.
• Clayton Christensen proposed a framework that distinguishes between sustaining and disruptive innovations.
• Sustaining innovation improves existing products or services based on the known needs of current customers.
• Disruptive innovation creates new markets and eventually displaces established competitors.
• Foundational technology has the potential to transform business operating models and lead to waves of technological and institutional change.
• The advent of the packet-switched communication protocol TCP/IP is an example of a foundational technology that transformed electronic communication and led to the emergence of the World Wide Web.

Economics and Innovation

• Economic growth has two components: growth in production and productivity.
• The concept of innovation emerged after the Second World War, largely influenced by the works of Joseph Schumpeter.
• Innovation can be seen as socially constructed processes and its conception depends on the political and societal context.
• Innovation today is best understood as innovation under capital, where the purpose for innovation is capital valorization and profit maximization.
• Innovation is often associated with the appropriation of knowledge through practices like patenting and planned obsolescence.

Non-economic innovation

• Definition of innovation includes social innovation, sustainable innovation (or green innovation), and responsible innovation.
• Innovation is not limited to generating profit for a firm.
• Different types of innovation focus on addressing social and environmental challenges.
• Social innovation aims to create positive social change.
• Sustainable innovation focuses on developing environmentally friendly solutions.

Open innovation

• Open innovation involves using individuals outside of an organizational context to solve complex problems.
• Crowd sourcing is a form of open innovation.
• Individuals with no expertise in a given area can contribute innovative solutions.
• Open innovation encourages collaboration and diversity of ideas.
• It can lead to breakthrough innovations and new perspectives.

User innovation

• User innovation relies on users of goods and services to come up with new ideas.
• Companies involve users in the development and implementation of new ideas.
• User innovation taps into the knowledge and experiences of the users.
• Users play an active role in shaping the products and services they use.
• User innovation can lead to products and services that better meet user needs.

History and Process of Innovation

• Innovation has a long history dating back to ancient times.
• Greek philosopher Xenophon discussed innovation in relation to political action.
• Plato and Aristotle had differing views on innovation.
• The concept of innovation evolved over time, with positive and negative connotations.
• In the 20th century, innovation became associated with economic growth and competitive advantage.
• Early model of innovation included idea generation, problem-solving, and implementation phases.
• Invention becomes innovation when it has an economic impact.
• Diffusion of innovation was not initially considered a phase.
• Silicon Valley start-ups emerged from the Stanford Industrial Park.
• Organizations of all types can innovate, including hospitals, universities, and local governments.

Innovation Mentions

Innovation Data Sources