Innovation

The actions required to create new ideas, processes or products which when implemented lead to positive effective change. While invention requires the creation of new ideas, processes or products, innovation moves one step further and requires implementation of the inventive act. Innovation also implies a value system which seeks to derive a positive outcome from the inventive act. For example, actions which lead to a negative performance metric would not be considered innovative, even if they met the requirements of novelty and enabling actions.

Innovation is creating new value and/or capturing value in a new way. Value is the key word, stressing the difference between innovation and invention. The definition is simple, easy to memorize and also good enough to encompass innovation in all the value chain.