Innovation does not necessarily proceed linearly from basic scientific research to product development; it is an iterative process of both matching markets needs to technological capabilities and conducting research to fill gaps in knowledge, whether during product conception, product design, manufacturing, marketing, or other phases of the innovation process.
Commercial success depends as much on the ability of firms to establish and protect a proprietary advantage in the marketplace as it does on their ability to generate new scientific and technical advances.
The process of innovation varies dramatically across industries and product lines. In some industries, like pharmaceuticals, innovation depends heavily on scientific breakthroughs; in others, like electronics, it derives more from product and process design. In addition, innovation takes on different characteristics throughout product and industry life cycles.
Some industries exhibit high levels of product innovation as firms attempt to settle on the primary characteristics and architectures of their new offerings; later phases are characterized more by process innovation, as firms attempt to improve their means of manufacturing existing product lines. Government policies to facilitate innovation and commercialization can be more effective if they recognize the varying conditions leading to success in different industries and address the many barriers firms face in all stages of innovation, from emergence to maturity.
Difference between innovation and invention
- Innovation- It includes the process of transforming an idea into a tangible commodity. In order to make innovation possible, it is extremely important to make sure that it is done at a reasonable cost without concerning the expenditure of the organizations. Information, initiative, and imagination are of high importance to derive utility and maximum value from the commodities. This in turn leads to the development of an organization.
- Invention-Invention is defined as a technical or scientific idea developed by scientists. Through the invention, society should be benefitted and profits must be yielded. It also must serve some noble cause. The invention will gain importance through this. Inventions drive innovations and to make that possible, an invention must be economically attainable.
Types of innovation.
- Disruptive innovation- Defines a process of innovation where new technologies are used to influence the function of an organization. Such type of innovation offers growth in the market besides benefitting the customers via reasonably priced products.
- Incremental innovation- This type of innovation requires the utilization of existing technologies to develop new and innovative products. It also enhances the product and increases its market value. It reduces the costs that the organization incurs for innovating a commodity. As a result, it enables an organization to stand strong against the competition. Incremental innovation cannot form new products and services.
- Radical innovation- Here with the help of new technological advances the existing system is completely replaced. It increases the customer base for the organization. At times the organization incurs losses as the customers might not accept the new system.
- Frugal Innovation-The production process, complexity, and cost of the commodity can be reduced through this innovation process. It will enable organizations to reduce their manufacturing-related expenses.
Technological innovation is the act of developing and putting to use new products and processes. It demands novelty in either the product/process/ service, the application, or both. Innovation, therefore, includes not only the development of entirely new products, processes, and services that create new applications, but also the development of new products, processes, and services for use in existing applications or the use of an existing product, process, or service in a new application. Innovation is more than just invention, which is the act of devising new products, processes, and services that are not obvious to someone skilled in the field.
No single model accurately depicts the process of innovation; innovation occurs differently in different industries and product lines as firms attempt to develop products and processes that meet market needs. In the pharmaceutical industry, for example, innovation is closely coupled to scientific discoveries and follows a fairly linear pathway through manufacturing and marketing, although firms often begin constructing manufacturing facilities while the drug is undergoing clinical trials.
In a company, the most innovative employees are presented with custom badge reels as a token of gift.