What is innovation? Definition
Different authors, specialized in this subject, have defined the concept of innovation, there are multiple definitions about a concept that seems to be simple but it is also ambiguous, the vast majority of definitions become from the definition given by the Austrian economist Schumpter. This definition involves the following 5 cases:
There are two main points in which all the authors agree:
Innovate is to create or the modification of a product and introduce it in the market.
About the second point Michael porter assets that :
There are two types of innovation, all of them are classified according to their application or their originality:
Types of innovation :
According to their application:
According to their grade originality:
Therefore any kind of innovation can be defined depending of the application as well its originality; we will see it better with the following example:
Let us imagine that the Machine of the time has been discovered which allows us to travel in the time, we could define the innovation like:
Depending on their application: Innovation of the product, because the innovation is defined by a possession.
Depending on the originality: Radical innovation, because before there was not any way to allow us travel over the time, is a product completely new.
Coming back to the real world: analysing the case of the outcome recordered CD's in the market, which kind of innovation supposed?
Depending on the application: Innovation of the product, because the innovation is defined by a possession.
Depending on the originality : Increase innovation, these CD's existed before but the innovation has offered to us a new services which is record the CD, and then erase it and record it again.
By this way we can define every innovation attending to the before steps :
Strategically the final objective of radical innovations is to obtain something completely new, while the increase innovations are orientated to reduce the costs.
Japanese people defend the continuously introduction of increase (known as Kaizen), however some of them think that nowadays the increase innovations are not enough.
Many actual companies uses the strategy of developing the radical innovations, for this they have specific machines and qualificate people, so, if they get a new product in the market they start with the increase innovation where they make massive productions. The main objective here is the reduction of costs.
Next Chapter : I+D+i - Investigation + Development + innovation.
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