What Innovation Is (and Isn't)
"Innovation" may be the most used - and most misused - word in business. Before we can practise it well, we need a precise, shared definition and a clear sense of what innovation is not. This module separates innovation from its close cousins - invention, creativity, and mere improvement - and introduces the simple but powerful idea at the heart of everything that follows: innovation is value plus adoption.
Quick poll
Off the top of your head, which of these best captures what 'innovation' means?
Pick the answer that fits you best - there's no wrong choice.
Value
It must be useful
Adoption
It must be used
Invention
Not the same thing
Creativity
A vital input
Learning objectives
After completing this module, you'll be able to:
- State a precise definition of innovation and explain each part of it
- Distinguish innovation from invention, creativity, and improvement
- Explain why value and adoption are both required for something to be an innovation
- Recognise why not all novelty is innovation, and not all innovation is novel technology
- Apply the distinction to real cases, including inventions that never became innovations
In this module
Sources & Further Reading
- •Global Innovation Institute (GInI), Foundations of Innovation body of knowledge.
- •Drucker, P., Innovation and Entrepreneurship, 1985.
- •Schumpeter, J., The Theory of Economic Development, 1934.
- •OECD/Eurostat, Oslo Manual (definitions of innovation), 4th ed., 2018.