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Innovation

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Innovation is the practical implementation of ideas to create new goods or services. It also involves improving existing offerings for society. While many people use the terms interchangeably, innovation is distinct from invention. An invention is a new ability or a new device. Innovation is the process of using that invention to make a meaningful impact in a market or society.

Linear model of innovation
Linear model of innovation

Essentially, innovation turns a creative thought into something that provides real value. This value can be redistributed or newly created within a system.

The process of innovation is often described as a multi-stage journey. It begins with creativity, which is the production of novel and useful ideas. This can happen within an individual or a small group of people. However, creativity alone is not innovation. Innovation requires the successful implementation of those ideas within an organization or an economic setting. Organizations must transform these ideas into improved products, processes, or services. This transformation allows them to advance, compete, and differentiate themselves in a marketplace.

InnovationLifeCycle
InnovationLifeCycle

Researchers categorize innovation into several distinct types based on how much they change a system. One framework by Henderson and Clark identifies four specific types. Radical innovation establishes a new dominant design and a new set of core design concepts. Incremental innovation is much more subtle, as it merely refines and extends an established design. In this case, the underlying core concepts remain the same while individual components improve. Architectural innovation changes the relationships between core design concepts. Finally, modular innovation changes only the core design concepts of a technology itself.

Another way to view these changes is through the lens of market impact. Clayton Christensen proposed a distinction between sustaining and disruptive innovation. Sustaining innovation focuses on the known needs of current customers. Examples include making microprocessors faster or creating flat-screen televisions. Disruptive innovation works differently by creating an entirely new market. This type of innovation can eventually displace established competitors. Examples of disruptive innovation include the transistor radio or crowdsourced encyclopedias.

L-Hochrad
L-Hochrad

Some technologies are even considered foundational. These can transform entire global technology systems and business models over many years.

The history of the concept shows how meanings can shift over centuries. In ancient Greece, Xenophon provided the first full-length discussion of innovation. He used the word *kainotomia* and linked it to political action. However, other philosophers like Plato were skeptical of it. In Rome, the words *novitas* or *res nova* were used to judge innovators. By the 16th century, the term often carried a negative or pejorative meaning. From the Renaissance until the late 1800s, it was often a synonym for rebellion, revolt, or heresy. It was not until the 20th century that the term became widely popular as a positive force.

In the modern era, innovation is closely tied to economics and growth. The economist Robert Solow demonstrated in 1957 that economic growth has two main components. One component is growth in production, such as wage labor and capital. The second component is productivity. Joseph Schumpeter, a major figure in innovation economics, described the economic effects of these processes as "creative destruction." He argued that industries must constantly revolutionize their structures from within. This involves using more effective processes and products to stay competitive.

Edison and phonograph edit2
Edison and phonograph edit2

Today, innovation can take many forms beyond just business and profit. There are social innovations, religious innovations, and sustainable or "green" innovations. There is also a concept called open innovation, or crowdsourcing. This involves using individuals outside of an organization to solve complex problems. Another method is user innovation, where companies rely on their own customers to develop new ideas. While much innovation is driven by profit, these other types show how ideas can serve different parts of human life.

Charles Herrold laboratory circa 1912
Charles Herrold laboratory circa 1912
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File:Edison and phonograph edit2.jpg
Edison and phonograph edit2.jpg
File:L-Hochrad.png
L-Hochrad.png
File:Linear model of innovation.svg
Linear model of innovation.svg
File:InnovationLifeCycle.jpg
InnovationLifeCycle.jpg
File:Technology adoption by households in the U.S.svg
Technology adoption by households in the U.S.svg
File:Charles_Herrold_laboratory_circa_1912.jpg
Charles_Herrold_laboratory_circa_1912.jpg
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