1.1.4 Summary of Key Points

Innovation is a continuous process, where a new idea is created, transformed into a concept for implementation of a new or significantly improved product/service through to commercialise. Innovation is not invention. As you may remember, the main types of innovation are product innovation, process innovation, marketing innovation and organizational innovation. Innovation types by novelty are incremental, radical and breakthrough. Innovation by firms' innovation strategy is divided into two groups: open and closed innovation. Depending of the approach, innovation is classified by top-down and bottom-up. And finally now that you are familiar with the theory, it is important to measure innovation using innovation metrics in order to analyze the organisations competence to innovate.

Please stop and think:
For a better understanding of innovation variety, we recommend you to spend some ten minutes thinking on answers to the following questions:

  • Is your firm innovative?
  • What type or types of innovation is your firm dealing with?

Now you know what innovation is and what it is not; what the main types of innovation are and that innovation is not confined only to big firms in high-tech industries - any firm in any industry can be innovative. You got hints on how to become innovative. Of course, it is not so easy. Our Guide will help you on your way to innovation with tools, methods, examples and information. In this Guide's component, we presented only basic information. For more detailed information on innovation subjects, please look at Bibliography and Web sites at the end of this component.