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Innovation is the practical implementation of
ideas A mental representation (or cognitive representation), in philosophy of mind Philosophy of mind is a branch of philosophy that studies the ontology and nature of the mind and its relationship with the body. The mind–body problem is a paradigm ...

ideas
that result in the introduction of new
goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...

goods
or
services Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of Faculty (academic staff), university faculty * Civil service, the body of employees of a governm ...
or improvement in offering goods or services.
ISO TC 279 ISO/TC 279 is a technical committee of the International Organization for Standardization The International Organization for Standardization (ISO; ) is an international standard-setting body composed of representatives from various nationa ...
in the standard ISO 56000:2020 defines innovation as "a new or changed entity realizing or redistributing value". Others have different definitions; a common element in the definitions is a focus on newness, improvement, and spread of ideas or technologies. Innovation often takes place through the development of more-effective products, processes,
service Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of university faculty * Civil service The civil service is a collective term for a sector of gove ...
s,
technologies Technology ("science of craft", from Greek , ''techne'', "art, skill, cunning of hand"; and , '' -logia'') is the sum of Art techniques and materials, techniques, skills, Scientific method, methods, and Business process, processes used in the ...

technologies
,
art work A work of art, artwork, art piece, piece of art or art object is an artistic creation of aesthetics, aesthetic value. Except for "work of art", which may be used of any work regarded as art in its widest sense, including works fr ...

art work
s or
business model
business model
s that innovators make available to
market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
s,
government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Departmen ...

government
s and
society A society is a group A group is a number A number is a mathematical object used to counting, count, measurement, measure, and nominal number, label. The original examples are the natural numbers 1, 2, 3, 4, and so forth. Numbers can be ...

society
. Innovation is related to, but not the same as,
invention An invention is a unique or novel A novel is a relatively long work of narrative fiction, typically written in prose and published as a book. The present English word for a long work of prose fiction derives from the for "new", "news", or ...

invention
: innovation is more apt to involve the practical implementation of an invention (i.e. new / improved ability) to make a meaningful impact in a market or society, and not all innovations require a new invention. Technical innovation often manifests itself via the
engineering Engineering is the use of scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad range of more specializ ...

engineering
process when the problem being solved is of a technical or scientific nature. The opposite of innovation is
exnovation In commerce and management, exnovation, an opposite of innovation, can occur when products and processes that have been tested and confirmed to be best-in-class are standardization, standardized to ensure that they are not innovated further. Compan ...
.


Definition

Surveys of the literature on innovation have found a variety of definitions. In 2009, Baregheh et al. found around 60 definitions in different scientific papers, while a 2014 survey found over 40. Based on their survey, Baragheh et al. attempted to define a multidisciplinary definition and arrived at the following definition:
"Innovation is the multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace"
In an industrial survey of how the
software industry The software industry includes businesses for development Development or developing may refer to: Arts *Development hell, when a project is stuck in development *Filmmaking#Development, Filmmaking, development phase, including finance and bud ...
defined innovation, the following definition given by Crossan and Apaydin was considered to be the most complete, which builds on the manual's definition:Edison, H., Ali, N.B., & Torkar, R. (2014)
Towards innovation measurement in the software industry
''Journal of Systems and Software'' 86(5), 1390–407.
American sociologist
Everett Rogers Everett M. "Ev" Rogers (March 6, 1931 – October 21, 2004) was an eminent American communication theorist and sociologist, who originated the ''diffusion of innovations Diffusion of innovations is a theory A theory is a reason, rational type of ...
, defined it as follows:
"An idea, practice, or object that is perceived as new by an individual or other unit of adoption"
According to Alan Altshuler and Robert D. Behn, innovation includes original invention and creative use and defines innovation as a generation, admission and realization of new ideas, products, services and processes. Two main dimensions of innovation are degree of
novelty Novelty (derived from Latin word novus for "new") is the quality of being new, or following from that, of being striking, original or unusual. Novelty may be the shared experience of a new cultural phenomenon or the subjective perception of an indi ...

novelty
(i.e. whether an innovation is new to the firm, new to the market, new to the industry, or new to the world) and kind of innovation (i.e. whether it is processor
product-service system Product-service systems (PSS) are business models that provide for cohesive delivery of products and services. PSS models are emerging as a means to enable collaborative consumption of both products and services, with the aim of pro-environmental ...
innovation). In organizational scholarship, researchers have also distinguished innovation to be separate from creativity, by providing an updated definition of these two related constructs:
Peter Drucker Peter Ferdinand Drucker (; ; November 19, 1909 – November 11, 2005) was an Austrian-American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corp ...
wrote:


Creativity and innovation

In general, innovation is distinguished from
creativity Creativity is a phenomenon whereby something new and valuable is formed. The created item may be intangible (such as an idea In common usage and in philosophy Philosophy (from , ) is the study of general and fundamental questions, suc ...

creativity
by its emphasis on the implementation of creative ideas in an economic setting. Amabile and Pratt in 2016, drawing on the literature, distinguish between creativity ("the production of novel and useful ideas by an individual or small group of individuals working together") and innovation ("the successful implementation of creative ideas within an organization").


Types

Several frameworks have been proposed for defining types of innovation.


Sustaining vs disruptive innovation

One framework proposed by
Clayton Christensen Clayton Magleby Christensen (April 6, 1952January 23, 2020) was an American academic and business consultant who developed the theory of " disruptive innovation", which has been called the most influential business idea of the early 21st century. ...
draws a distinction between sustaining and
disruptive innovation In business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a busine ...
s. Sustaining innovation is the improvement of a product or service based on the known needs of current customers (e.g. faster microprocessors, flat screen televisions). Disruptive innovation in contrast refers to a process by which a new product or service creates a new market (e.g. transistor radio, free crowdsourced encyclopedia, etc.), eventually displacing established competitors. According to Christensen, disruptive innovations are critical to long-term success in business. Disruptive innovation is often enabled by disruptive technology. Marco Iansiti and Karim R. Lakhani define foundational technology as having the potential to create new foundations for global technology systems over the longer term. Foundational technology tends to transform business
operating modelAn operating model is both an abstract and visual representation (model) of how an organization delivers value to its customers or beneficiaries as well as how an organization actually runs itself. Definition There are different ways of defining the ...
s as entirely new business models
emerge Emerge may refer to: * ''Emerge: The Best of Neocolours'', the fourth album of Neocolours * Emerge Desktop, a Desktop shell replacement for Microsoft Windows * Emerge (magazine), ''Emerge'' (magazine), a defunct news magazine * Emerge Stimulation D ...

emerge
over many years, with gradual and steady adoption of the innovation leading to waves of
technological Technology ("science of craft", from Ancient Greek, Greek , ''techne'', "art, skill, cunning of hand"; and , ''wikt:-logia, -logia'') is the sum of Art techniques and materials, techniques, skills, Scientific method, methods, and Business proc ...

technological
and
institution Institutions, according to Samuel P. Huntington Samuel Phillips Huntington (April 18, 1927 – December 24, 2008) was an American political scientist, adviser and academic. He spent more than half a century at Harvard University Ha ...
al change that gain momentum more slowly. The advent of the
packet-switched In telecommunication Telecommunication is the transmission of information Information can be thought of as the resolution of uncertainty; it answers the question of "What an entity is" and thus defines both its essence and the nature of ...
communication protocol
TCP/IP The Internet protocol suite, commonly known as TCP/IP, is the set of communications protocol A communication protocol is a system of rules that allows two or more entities of a communications system 400px, Communication system A commu ...
—originally introduced in 1972 to support a single
use case In software engineering, software and systems engineering, the phrase use case is a Polysemy, polyseme with two Word sense, senses: # A usage scenario for a piece of software; often used in the plural to suggest situations where a piece of soft ...

use case
for
United States Department of Defense The United States Department of Defense (DoD, USDOD or DOD) is an executive branch department of the federal government A federation (also known as a federal state) is a political entity A polity is an identifiable political entity ...
electronic communication (email), and which gained widespread adoption only in the mid-1990s with the advent of the
World Wide Web The World Wide Web (WWW), commonly known as the Web, is an information system An information system (IS) is a formal, sociotechnical Sociotechnical systems (STS) in organizational development is an approach to complex organizational ...
—is a foundational technology.


Four types model

Another framework was suggested by Henderson and Clark. They divide innovation into four types; * Radical innovation: "establishes a new dominant design and, hence, a new set of core design concepts embodied in components that are linked together in a new architecture." (p.11) * Incremental innovation: "refines and extends an established design. Improvement occurs in individual components, but the underlying core design concepts, and the links between them, remain the same." (p.11) * Architectural innovation: "innovation that changes only the relationships between them he core design concepts (p.12) * Modular Innovation: "innovation that changes only the core design concepts of a technology" (p.12) While Henderson and Clark as well as Christensen talk about technical innovation there are other kinds of innovation as well, such as service innovation and organizational innovation.


Non-economic innovation

The classical definition of innovation being limited to the primary goal of generating profit for a firm, has led others to define other types of innovation such as: social innovation, sustainable or green innovation, and responsible innovation.


History

The word "innovation" once had a quite different meaning. The first full-length discussion about innovation is the account by the Greek philosopher and historian
Xenophon Xenophon of Athens (; grc, Ξενοφῶν Xenophon of Athens (; grc-gre, Ξενοφῶν, , ''Xenophōn''; – 354 BC) was an Athenian , image_skyline = File:Athens Montage L.png, center, 275px, alt=Athens mont ...

Xenophon
(430–355 BCE). He viewed the concept as multifaceted and connected it to political action. The word for innovation that he uses is 'Kainotomia' and before him it had been used in two plays by
Aristophanes Aristophanes (; grc, Ἀριστοφάνης, ; c. 446 – c. 386 BC), son of Philippus, of the deme 250px, Pinakia, identification tablets (name, father's name, deme) used for tasks like jury selection, Museum at the Ancient Agora of Athe ...

Aristophanes
.
Plato Plato ( ; grc-gre, Πλάτων ; 428/427 or 424/423 – 348/347 BC) was an Classical Athens, Athenian philosopher during the Classical Greece, Classical period in Ancient Greece, founder of the Platonist school of thought and the Platoni ...

Plato
discussed innovation in his book Laws and was not very fond of the concept. He was skeptical to it in both culture (dancing and art) and education (he did not believe in introducing new games and toys to the kids).
Aristotle Aristotle (; grc-gre, Ἀριστοτέλης ''Aristotélēs'', ; 384–322 BC) was a Greek philosopher A philosopher is someone who practices philosophy Philosophy (from , ) is the study of general and fundamental questio ...

Aristotle
did not like organizational innovations as he believed that all possible forms of organization had been discovered. (Politics II as cited by
Benoît Godin Benoît Godin is a Canadian political scientist Political science is the scientific study of politics. It is a social science dealing with systems of governance Governance comprises all of the processes of governing – whether undertaken ...
2015) Before the 4th century in Rome, the words ''novitas'' and ''res nova / nova resmeant'' were used with either negative or positive judgment on the innovator. This concept meant renewing and was incorporated into the new word ''innovo'' in the centuries that followed. It was used in the ''
Vulgate The Vulgate (; also called , ) is a late-4th-century Latin translation of the Bible The Bible (from Koine Greek Koine Greek (, , Greek approximately ;. , , , lit. "Common Greek"), also known as Alexandrian dialect, common Attic, ...
'' Bible in spiritual as well as political contexts. It was also used in poetry and then mainly had spiritual connotations but was also connected to political, material and cultural aspects. In Machiavelli's
The Prince ''The Prince'' ( it, Il Principe ; la, De Principatibus) is a 16th-century political treatise A treatise is a formal Formal, formality, informal or informality imply the complying with, or not complying with, some set theory, set of requirem ...
(1513), innovation is described in a political setting. It is portrayed as a strategy a Prince may employ in order to cope with a constantly changing world as well as the corruption within it. Here innovation is described as introducing change in government (new laws and institutions) in Machiavelli's later book The Discourses (1528) innovation is described as imitation, as a return to the original that has been corrupted by people and by time. Thus for Machiavelli Innovation came with positive connotations. This is however an exception in the description of innovation from the 16th century and onward. No innovator from the renaissance until the late 19th century ever thought of applying the word innovator upon themselves, it was a word used to attack enemies. From the 1400s through the 1600s, the concept of innovation was pejorative – the term was an early-modern synonym for "rebellion", "revolt" and "heresy". In the 1800s people promoting
capitalism Capitalism is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea o ...

capitalism
saw
socialism Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individuals, ...
as an innovation and spent a lot of energy working against it. For instance
Goldwin Smith Goldwin Smith (13 August 1823 – 7 June 1910) was a British historian and journalist, active in the United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain,Usage is m ...

Goldwin Smith
saw the spread of social innovations as an attack on money and banks. These social innovations were socialism, communism, nationalization, cooperative associations. In the 1900s the concept of innovation did not become popular until after the Second World War. This is the point in time when people started to talk about ''technological'' product innovation and tie it to the idea of economic growth and competitive advantage.
Joseph Schumpeter Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian political economist. He was born in Moravia Moravia ( , also , ; cs, Morava ; german: link=no, Mähren ; pl, Morawy ; szl, Morawijo; la, Moravia) is a h ...
(1883–1950) is often credited for being the one who made the term popular and he contributed greatly to the study of
innovation economics Innovation economics is new and growing field of economic theory Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution ...
, In
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
and in
economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interact ...

economics
, innovation can be a catalyst for growth. With rapid advancements in
transportation Transport (in British English British English (BrE) is the standard dialect A standard language (also standard variety, standard dialect, and standard) is a language variety that has undergone substantial codification of grammar and ...

transportation
and
communications Communication (from Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Through the power of the Roman Rep ...
over the past few decades, the old concepts of
factor endowmentA factor endowment, in economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), cons ...
s and
comparative advantage In an economic model In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics) ...

comparative advantage
which focused on an area's unique inputs are outmoded in today's
global economy Global means of or referring to a globe A globe is a spherical of , of some other , or of the . Globes serve purposes similar to s, but unlike maps, they do not distort the surface that they portray except to scale it down. A model globe of Ear ...

global economy
. Schumpeter argued that industries must incessantly revolutionize the economic structure from within, that is innovate with better or more effective processes and products, as well as market distribution, such as the connection from the craft shop to factory. He famously asserted that "
creative destruction Creative destruction (German: ''schöpferische Zerstörung''), sometimes known as Schumpeter's gale, is a concept in economics Economics () is the social science that studies how people interact with value; in particular, the Production ( ...
is the essential fact about
capitalism Capitalism is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea o ...

capitalism
".
Entrepreneur Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply ...

Entrepreneur
s continuously look for better ways to satisfy their
consumer base The customer base is the group of customers who repeatedly purchase the goods or services of a business. These customers are a main source of revenue for a company. The customer base may be considered the business's target market, where customer beh ...
with improved quality, durability, service and price which come to fruition in innovation with advanced technologies and organizational strategies. A prime example of innovation involved the boom of
Silicon Valley Silicon Valley is a region in Northern California Northern California (colloquially known as NorCal) is a geographic and cultural region that generally comprises the northern portion of the U.S. state of California California is a U.S ...

Silicon Valley
startups out of the Stanford Industrial Park. In 1957, dissatisfied employees of
Shockley Semiconductor File:Facebook building 391, Mountain View, pre-dawn.jpg, Facebook's building 391, at the site of the Shockley Semiconductor Laboratory in Mountain View, California; pre-dawn view from the Hyatt Centric Hotel Shockley Semiconductor Laboratory was ...
, the company of
Nobel laureate Nobel laureates of 2012 Alvin E. Roth, Brian Kobilka, Robert J. Lefkowitz">Brian_Kobilka.html" ;"title="Alvin E. Roth, Brian Kobilka">Alvin E. Roth, Brian Kobilka, Robert J. Lefkowitz, David J. Wineland, and Serge Haroche during the ceremony Th ...
and co-inventor of the
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transistor
William Shockley William Bradford Shockley Jr. (February 13, 1910 – August 12, 1989) was an American physicist and inventor. He was the manager of a research group at Bell Labs Nokia Bell Labs (formerly named Bell Labs Innovations (1996–2007), AT&T Bell ...
, left to form an independent firm,
Fairchild Semiconductor Fairchild Semiconductor International, Inc. was an American semiconductor A semiconductor material has an electrical conductivity Electrical resistivity (also called specific electrical resistance or volume resistivity) is a fundamental pr ...
. After several years, Fairchild developed into a formidable presence in the sector. Eventually, these founders left to start their own companies based on their own unique ideas, and then leading employees started their own firms. Over the next 20 years, this process resulted in the momentous startup-company explosion of information-technology firms. Silicon Valley began as 65 new enterprises born out of Shockley's eight former employees. Another example involves business incubators – a phenomenon nurtured by governments around the world, close to knowledge clusters (mostly research-based) like universities or other Government Excellence Centres – which aim primarily to channel generated knowledge to applied innovation outcomes in order to stimulate regional or national
economic growth Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economics, economy over time. Statisticians conventionally measure such growth as the percent rate of i ...

economic growth
.


Process of innovation

An early model included only three phases of innovation. According to Utterback (1971), these phases were: 1) idea generation, 2) problem solving, and 3) implementation. By the time one completed phase 2, one had an invention, but until one got it to the point of having an economic impact, one didn't have an innovation. Diffusion wasn't considered a phase of innovation. Focus at this point in time was on manufacturing. All organizations can innovate, including for example hospitals, universities, and local governments. The organization requires a proper structure in order to retain competitive advantage. Organizations can also improve profits and performance by providing work groups opportunities and resources to innovate, in addition to employee's core job tasks. Executives and managers have been advised to break away from traditional ways of thinking and use change to their advantage. The world of work is changing with the increased use of technology and companies are becoming increasingly competitive. Companies will have to downsize or reengineer their operations to remain competitive. This will affect employment as businesses will be forced to reduce the number of people employed while accomplishing the same amount of work if not more. For instance, former Mayor Martin O’Malley pushed the City of Baltimore to use CitiStat, a performance-measurement data and management system that allows city officials to maintain statistics on several areas from crime trends to the conditions of
pothole A pothole is a depression in a road surface A road surface (British English British English (BrE) is the standard dialect of the English language English is a West Germanic languages, West Germanic language first spoken in H ...

pothole
s. This system aided in better evaluation of policies and procedures with accountability and efficiency in terms of time and money. In its first year, CitiStat saved the city $13.2 million. Even
mass transit File:201703118号线列车正在开出沈杜公路折返线.jpg, Shanghai Metro is the second largest rapid transit system in the world by route length, after the Beijing Subway. Public transport (also known as public transportation, publi ...
systems have innovated with
hybrid Hybrid may refer to: Economics and finance * Hybrid market, a system allowing stock trades to be completed either electronically or manually * Hybrid security, a type of economic instrument Technology Electrical power generation * Hybrid generato ...
bus fleets to real-time tracking at bus stands. In addition, the growing use of
mobile data terminal A mobile data terminal (MDT) or mobile digital computer (MDC) is a computerized device used in public transit vehicles, taxicab A taxicab, also known as a taxi or a cab, is a type of vehicle for hire in New York City File:Chariot Bikes f ...
s in vehicles, that serve as communication hubs between vehicles and a control center, automatically send data on location, passenger counts, engine performance, mileage and other information. This tool helps to deliver and manage transportation systems. Still other innovative strategies include
hospital A hospital is a health care Healthcare is the maintenance or improvement of health Health is a state of physical, mental and social well-being Well-being, also known as ''wellness'', ''prudential value'' or ''quality of life'', refe ...

hospital
s digitizing medical information in
electronic medical records An electronic health record (EHR) is the systematized collection of patient and population electronically stored health information in a digital format. These records can be shared across different health care Healthcare is the maintenance o ...
. For example, the U.S. Department of Housing and Urban Development's
HOPE VIHOPE VI is a program of the United States Department of Housing and Urban Development The United States Department of Housing and Urban Development (HUD) is a Cabinet department in the executive branch The executive is the branch of governmen ...
initiatives turned severely distressed
public housing Public housing is a form of housing tenure in which the property is usually owned by a government authorities, government authority, either central or local. Social housing is any rental housing that may be owned and managed by the state ...
in urban areas into revitalized, mixed-income environments; the Harlem Children’s Zone used a community-based approach to educate local area children; and the
Environmental Protection Agency A biophysical environment is a biotic Biotics describe living or once living components of a community; for example organisms, such as animals and plants. Biotic may refer to: *Life, the condition of living organisms *Biology, the study of life ...
's brownfield grants facilitates turning over
brownfield In urban planning, brownfield land is any previously developed land that is not currently in use that may be potentially contaminated. The term is also used to describe real property, land previously used for industrial or commercial purposes wi ...
s for
environmental protection Environmental protection is the practice of protecting the natural environment The natural environment or natural world encompasses all and non-living things occurring , meaning in this case not . The term is most often applied to the or s ...
, green spaces,
community A community is a social unit The term "level of analysis" is used in the social sciences to point to the location, size, or scale of a research target. "Level of analysis" is distinct from the term "unit of observation" in that the former refer ...
and
commercial development Trade involves the transfer of goods from one person or entity to another, often in exchange for money. Economists refer to a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of ru ...

commercial development
.


Sources of innovation

Innovation may occur due to effort from a range of different agents, by chance, or as a result of a major system failure. According to
Peter F. Drucker Peter Ferdinand Drucker (; ; November 19, 1909 – November 11, 2005) was an Austrian management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation ...
, the general sources of innovations are changes in industry structure, in market structure, in local and global demographics, in human perception, in the amount of available scientific knowledge, etc. In the simplest
linear model of innovationThe Linear Model of Innovation was an early model designed to understand the relationship of science and technology that begins with basic research that flows into applied research, development and diffusion It posits scientific research as the b ...
the traditionally recognized source is ''manufacturer innovation''. This is where an agent (person or business) innovates in order to sell the innovation. Specifically, R&D measurement is the commonly used input for innovation, in particular in the business sector, named Business Expenditure on R&D (BERD) that grew over the years on the expenses of the declining R&D invested by the public sector. Another source of innovation, only now becoming widely recognized, is ''end-user innovation''. This is where an agent (person or company) develops an innovation for their own (personal or in-house) use because existing products do not meet their needs.
MIT Massachusetts Institute of Technology (MIT) is a private land-grant research university A research university is a university A university ( la, universitas, 'a whole') is an educational institution, institution of higher education, hi ...
economist
Eric von Hippel Eric von Hippel (born August 27, 1941) is an American economist and a professor at the MIT Sloan School of Management The MIT Sloan School of Management (also known as MIT Sloan or Sloan) is the business school A business school is a university- ...
has identified end-user innovation as, by far, the most important and critical in his classic book on the subject, ''"The Sources of Innovation"''. The robotics engineer Joseph F. Engelberger asserts that innovations require only three things: # a recognized need # competent people with relevant technology # financial support The Kline chain-linked model of innovation places emphasis on potential market needs as drivers of the innovation process, and describes the complex and often iterative feedback loops between marketing, design, manufacturing, and R&D.


Facilitating innovation

Innovation by businesses is achieved in many ways, with much attention now given to formal
research and development Research and development (R&D, R+D), known in Europe Europe is a continent A continent is any of several large landmasses. Generally identified by convention (norm), convention rather than any strict criteria, up to seven geogra ...
(R&D) for "breakthrough innovations". R&D help spur on patents and other scientific innovations that leads to productive growth in such areas as industry, medicine, engineering, and government.Mark, M., Katz, B., Rahman, S., and Warren, D. (2008
''MetroPolicy: Shaping A New Federal Partnership for a Metropolitan Nation''
Brookings Institution: Metropolitan Policy Program Report. pp. 4–103.
Yet, innovations can be developed by less formal on-the-job modifications of practice, through exchange and combination of professional experience and by many other routes. Investigation of relationship between the concepts of innovation and technology transfer revealed overlap. The more radical and revolutionary innovations tend to emerge from R&D, while more incremental innovations may emerge from practice – but there are many exceptions to each of these trends. Information technology and changing business processes and management style can produce a work climate favorable to innovation. For example, the software tool company
Atlassian Atlassian Corporation Plc () is an Australian software company that develops products for software development, software developers, project management, project managers and other software development teams. History Mike Cannon-Brookes and S ...
conducts quarterly "ShipIt Days" in which employees may work on anything related to the company's products. Google employees work on self-directed projects for 20% of their time (known as Innovation Time Off). Both companies cite these bottom-up processes as major sources for new products and features. An important innovation factor includes customers buying products or using services. As a result, organizations may incorporate users in
focus group A focus group is a group interview involving a small number of demographically similar people or participants who have other common traits/experiences. Their reactions to specific researcher/evaluator-posed questions are studied. Focus groups are ...
s (user centered approach), work closely with so-called lead users (lead user approach), or users might adapt their products themselves. The lead user method focuses on idea generation based on leading users to develop breakthrough innovations. U-STIR, a project to innovate
Europe Europe is a continent A continent is any of several large landmass A landmass, or land mass, is a large region In geography Geography (from Greek: , ''geographia'', literally "earth description") is a field of scienc ...

Europe
's surface
transportation Transport (in British English British English (BrE) is the standard dialect A standard language (also standard variety, standard dialect, and standard) is a language variety that has undergone substantial codification of grammar and ...

transportation
system, employs such workshops. Regarding this
user innovation __NOTOC__ User innovation refers to innovation 190px, Thomas Edison with phonograph. Edison was one of the most prolific inventors in history, holding List of Edison patents, 1,093 U.S. patents in his name. Innovation is the practical implement ...
, a great deal of innovation is done by those actually implementing and using technologies and products as part of their normal activities. Sometimes user-innovators may become
entrepreneur Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply ...

entrepreneur
s, selling their product, they may choose to trade their innovation in exchange for other innovations, or they may be adopted by their suppliers. Nowadays, they may also choose to freely reveal their innovations, using methods like
open source Open source is source code that is made freely available for possible modification and redistribution. Products include permission to use the source code, design documents, or content of the product. The open-source model is a decentralized softwa ...
. In such networks of innovation the users or communities of users can further develop technologies and reinvent their social meaning. One technique for innovating a solution to an identified problem is to actually attempt an experiment with many possible solutions. This technique was famously used by laboratory to find a version of the
incandescent light bulb An incandescent light bulb, incandescent lamp or incandescent light globe is an electric light An electric light is a device that produces visible light Light or visible light is electromagnetic radiation within the portion of the ...

incandescent light bulb
economically viable for home use, which involved searching through thousands of possible
filament The word filament, which is descended from Latin ''filum'' meaning " thread", is used in English for a variety of thread-like structures, including: In commerce * Fiber Fiber or fibre (from la, fibra, links=no) is a natural or #Man-made f ...
designs before settling on carbonized bamboo. This technique is sometimes used in pharmaceutical
drug discovery In the fields of medicine, biotechnology Biotechnology is a broad area of biology, involving the use of living systems and organisms to develop or make products. Depending on the tools and applications, it often overlaps with related scientif ...
. Thousands of chemical compounds are subjected to
high-throughput screening High-throughput screening (HTS) is a method for scientific experiment An experiment is a procedure carried out to support, refute, or validate a hypothesis. Experiments provide insight into Causality, cause-and-effect by demonstrating what ou ...

high-throughput screening
to see if they have any activity against a target molecule which has been identified as biologically significant to a disease. Promising compounds can then be studied; modified to improve efficacy and reduce side effects, evaluated for cost of manufacture; and if successful turned into treatments. The related technique of
A/B testing A/B testing (also known as bucket testing or split-run testing) is a user experience research methodology. A/B tests consist of a randomized experiment with two variants, A and B. It includes application of statistical hypothesis testing or " tw ...
is often used to help optimize the design of
web site A website (also written as web site) is a collection of web page A web page (or webpage) is a hypertext File:Douglas Engelbart in 2008.jpg, Douglas Engelbart in 2009, at the 40th anniversary celebrations of "The Mother of All Demos" ...
s and
mobile app A mobile application, also referred to as a mobile app or simply an app, is a computer program In imperative programming In computer science, imperative programming is a programming paradigm that uses Statement (computer science), statements t ...
s. This is used by major sites such as
amazon.com Amazon.com, Inc. ( ) is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational ...
,
Facebook Facebook is an American online social media and social networking service owned by Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, an ...

Facebook
,
Google Google LLC is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational stat ...

Google
, and
Netflix Netflix, Inc. is an American subscription The subscription business model is a business model in which a customer In sales Sales are activities related to selling or the number of goods sold in a given targeted time period. Th ...

Netflix
.Why These Tech Companies Keep Running Thousands Of Failed Experiments
Fast Company.com (21 September 2016). Retrieved 16 October 2018.
Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods A final good or consumer good is a final product In Production (economics), production, a final product, or finished product is a product (business), product th ...
uses computer-simulated products and online user panels to conduct larger numbers of experiments to guide the design, packaging, and shelf placement of consumer products.
Capital One Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts, headquartered in McLean, Virginia with operations primarily in the United States. It is on the list o ...
uses this technique to drive credit card marketing offers.


Goals and failures

Programs of organizational innovation are typically tightly linked to organizational goals and objectives, to the
business plan A business plan is a formal written document containing the goals of a business Business is the activity of making one's living or making money by producing or buying and selling Product (business), products (such as goods and services). Simpl ...

business plan
, and to
market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
competitive positioning. One driver for innovation programs in corporations is to achieve growth objectives. As Davila et al. (2006) notes, "Companies cannot grow through cost reduction and reengineering alone... Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results".Davila, T., Epstein, M. J., and Shelton, R. (2006). "Making Innovation Work: How to Manage It, Measure It, and Profit from It." Upper Saddle River: Wharton School Publishing. One survey across a large number of manufacturing and services organizations found, ranked in decreasing order of popularity, that systematic programs of organizational innovation are most frequently driven by: improved
quality Quality may refer to: Concepts *Quality (business), the ''non-inferiority'' or ''superiority'' of something *Quality (philosophy), an attribute or a property *Quality (physics), in response theory *Energy quality, used in various science disciplin ...
, creation of new
market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
s, extension of the product range, reduced
labor costDirect labor cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work ...
s, improved production processes, reduced materials, reduced
environmental damageImage:Wallaroo-mines-0749.jpg, Eighty-plus years after the abandonment of Wallaroo Mines (Kadina, South Australia), mosses remain the only vegetation at some spots of the site's grounds. Environmental degradation is the deterioration of the environm ...
, replacement of products/
services Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of Faculty (academic staff), university faculty * Civil service, the body of employees of a governm ...
, reduced
energy In physics Physics is the that studies , its , its and behavior through , and the related entities of and . "Physical science is that department of knowledge which relates to the order of nature, or, in other words, to the regula ...

energy
consumption, conformance to
regulation Regulation is the management of complex systems A complex system is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way e ...

regulation
s. These goals vary between improvements to products, processes and services and dispel a popular myth that innovation deals mainly with new product development. According to Andrea Vaona and Mario Pianta, some example goals of innovation could stem from two different types of technological strategies: ''technological competitiveness'' and ''active price competitiveness''. ''Technological competitiveness'' may have a tendency to be pursued by smaller firms and can be characterized as "efforts for market-oriented innovation, such as a strategy of market expansion and patenting activity." On the other hand, ''active price competitiveness'' is geared toward process innovations that lead to efficiency and flexibility, which tend to be pursued by large, established firms as they seek to expand their market foothold. Most of the goals could apply to any organization be it a manufacturing facility, marketing company, hospital or government. Whether innovation goals are successfully achieved or otherwise depends greatly on the environment prevailing in the organization. Conversely, failure can develop in programs of innovations. The causes of failure have been widely researched and can vary considerably. Some causes will be external to the organization and outside its influence of control. Others will be internal and ultimately within the control of the organization. Internal causes of failure can be divided into causes associated with the cultural infrastructure and causes associated with the innovation process itself. Common causes of failure within the innovation process in most organizations can be distilled into five types: poor goal definition, poor alignment of actions to goals, poor participation in teams, poor monitoring of results, poor communication and
access to information Access may refer to: Companies and organizations * ACCESS (Australia), an Australian youth network * Access (credit card), a former credit card in the United Kingdom * Access Co., a Japanese software company * Access International Advisors, a hedg ...
.


Diffusion

Diffusion of innovation research was first started in 1903 by seminal researcher
Gabriel Tarde Gabriel Tarde (; in full Jean-Gabriel De Tarde; 12 March 1843 – 13 May 1904) was a French Sociology, sociologist, Criminology, criminologist and Social psychology, social psychologist who conceived sociology as based on small psychological i ...
, who first plotted the S-shaped diffusion curve. Tarde defined the innovation-decision process as a series of steps that include: # knowledge # forming an attitude # a decision to adopt or reject # implementation and use # confirmation of the decision Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. This process has been proposed that the lifecycle of innovations can be described using the ' s-curve' or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point, customers begin to demand and the product growth increases more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its lifecycle, growth slows and may even begin to decline. In the later stages, no amount of new investment in that product will yield a normal rate of return. The s-curve derives from an assumption that new products are likely to have "product life" – ie, a start-up phase, a rapid increase in revenue and eventual decline. In fact, the great majority of innovations never get off the bottom of the curve, and never produce normal returns. Innovative companies will typically be working on new innovations that will eventually replace older ones. Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an
emerging technology ''Emerging'' is the title of the only album by the Phil Keaggy Band, released in 1977 on NewSong Records NewSong is an American contemporary Christian music group that was founded in 1981, at Morningside Baptist Church in Valdosta, Georgia. ...
that currently yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.


Measures

Measuring innovation is inherently difficult as it implies commensurability so that comparisons can be made in quantitative terms. Innovation, however, is by definition novelty. Comparisons are thus often meaningless across products or service. Nevertheless, Edison et al. in their review of literature on
innovation management Innovation management is a combination of the management Management (or managing) is the administration of an organization, whether it is a business, a not-for-profit organization, or government body. Management includes the activities of ...
found 232 innovation metrics. They categorized these measures along five dimensions; ie inputs to the innovation process, output from the innovation process, effect of the innovation output, measures to access the activities in an innovation process and availability of factors that facilitate such a process. There are two different types of measures for innovation: the organizational level and the political level.


Organizational-level

:The measure of innovation at the organizational level relates to individuals, team-level assessments, and private companies from the smallest to the largest company. Measure of innovation for organizations can be conducted by surveys, workshops, consultants, or internal benchmarking. There is today no established general way to measure organizational innovation. Corporate measurements are generally structured around
balanced scorecard A balanced scorecard is a strategy performance management Performance management (PM) is the process of ensuring that a set of activities and outputs meets an organization's goal A goal is an idea of the future or desired result that a p ...

balanced scorecard
s which cover several aspects of innovation such as business measures related to finances, innovation process efficiency, employees' contribution and motivation, as well benefits for customers. Measured values will vary widely between businesses, covering for example new product revenue, spending in R&D, time to market, customer and employee perception & satisfaction, number of patents, additional sales resulting from past innovations.


Political-level

:For the political level, measures of innovation are more focused on a country or region
competitive advantage In business, a competitive advantage is the attribute that allows an organization to outperform its competitors. A competitive advantage may include access to natural resources , Malaysia Malaysia ( ; ) is a country in Southeast Asia. ...
through innovation. In this context, organizational capabilities can be evaluated through various evaluation frameworks, such as those of the European Foundation for Quality Management. The
OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38 member countries, founded in 1961 to st ...

OECD
Oslo Manual (1992) suggests standard guidelines on measuring technological product and process innovation. Some people consider the Oslo Manual complementary to the Frascati Manual from 1963. The new Oslo Manual from 2018 takes a wider perspective to innovation, and includes marketing and organizational innovation. These standards are used for example in the European Community Innovation Surveys. Other ways of measuring innovation have traditionally been expenditure, for example, investment in R&D (Research and Development) as percentage of GNP (Gross National Product). Whether this is a good measurement of innovation has been widely discussed and the Oslo Manual has incorporated some of the critique against earlier methods of measuring. The traditional methods of measuring still inform many policy decisions. The EU
Lisbon Strategy The Lisbon Strategy, also known as the Lisbon Agenda or Lisbon Process, was an action and development plan devised in 2000, for the economy of the European Union between 2000 and 2010. A pivotal role in its formulation was played by the Portugues ...
has set as a goal that their average expenditure on R&D should be 3% of GDP.


Indicators

Many scholars claim that there is a great bias towards the "science and technology mode" (S&T-mode or STI-mode), while the "learning by doing, using and interacting mode" (DUI-mode) is ignored and measurements and research about it rarely done. For example, an institution may be high tech with the latest equipment, but lacks crucial doing, using and interacting tasks important for innovation. A common industry view (unsupported by empirical evidence) is that comparative
cost-effectiveness Cost-effectiveness analysis (CEA) is a form of economic analysis that compares the relative costs and outcomes (effects) of different courses of action. Cost-effectiveness analysis is distinct from cost–benefit analysis, which assigns a monetar ...

cost-effectiveness
research is a form of
price control Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods ...
which reduces returns to industry, and thus limits R&D expenditure, stifles future innovation and compromises new products access to markets. Some academics claim cost-effectiveness research is a valuable value-based measure of innovation which accords "truly significant" therapeutic advances (ie providing "health gain") higher prices than free market mechanisms. Such
value-based pricingValue-based price (also value optimized pricing and ''charging what the market will bear'') is a pricing strategies, pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or serv ...
has been viewed as a means of indicating to industry the type of innovation that should be rewarded from the public purse. An
Australian Australians, colloquially referred to as "Aussies", are the citizens Citizenship is a relationship between an individual and a state to which the individual owes allegiance and in turn is entitled to its protection. Each state determines ...
academic developed the case that national comparative
cost-effectiveness analysis Cost-effectiveness analysis (CEA) is a form of economic analysis that compares the relative costs and outcomes (effects) of different courses of action. Cost-effectiveness analysis is distinct from cost–benefit analysis, which assigns a monetar ...
systems should be viewed as measuring "health innovation" as an
evidence-based policy Evidence-based policy (EBP) is an idea in public policy Public policy is a course of action created and/or enacted, typically by a government A government is the system or group of people governing an organized community, generally a ...
concept for valuing innovation distinct from valuing through competitive markets, a method which requires strong
anti-trust Competition law is a law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as ''anti-monopoly A ...
laws to be effective, on the basis that both methods of assessing pharmaceutical innovations are mentioned in annex 2C.1 of the Australia-United States Free Trade Agreement.


Indices

Several indices attempt to measure innovation and rank entities based on these measures, such as: *
Bloomberg Innovation Index Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan Midtown Manhattan is the central portion of the New York City borough of Manhattan Manhattan (), known regionally as the ...
*"Bogota Manual" similar to the Oslo Manual, is focused on Latin America and the Caribbean countries. *"Creative Class" developed by
Richard Florida Richard L. Florida is an American urban studies theorist focusing on social and economic theory. He is a professor at the Rotman School of Management at the University of Toronto and a Distinguished Fellow at New York University School of Professio ...

Richard Florida
* EIU Innovation Ranking *
Global Competitiveness Report The ''Global Competitiveness Report'' (GCR) is a yearly report published by the World Economic Forum The World Economic Forum (WEF), based in Cologny, Geneva Canton, Switzerland, is an International non-governmental organization, international ...
*
Global Innovation Index The Global Innovation Index is an annual ranking of countries by their capacity for, and success in, innovation. It was started in 2007 by INSEAD and ''World Business'', a British magazine. Until 2021 it was published by the World Intellectual ...

Global Innovation Index
(GII), by
INSEAD INSEAD (contraction of "Institut Européen d'Administration des Affaires.") is a non-profit business school that maintains campuses in Europe (Fontainebleau, France), Asia (Singapore), the Middle East (Abu Dhabi, UAE), and North America (San Fran ...
* Information Technology and Innovation Foundation (ITIF) Index
Innovation 360
– From the World Bank. Aggregates innovation indicators (and more) from a number of different public sources *Innovation Capacity Index (ICI) published by a large number of international professors working in a collaborative fashion. The top scorers of ICI 2009–2010 were: 1. Sweden 82.2; 2. Finland 77.8; and 3. United States 77.5 * Innovation Index, developed by the Indiana Business Research Center, to measure innovation capacity at the county or regional level in the United States * Innovation Union Scoreboard * for Germany, developed by the Federation of German Industries (Bundesverband der Deutschen Industrie) in 2005 *
INSEAD INSEAD (contraction of "Institut Européen d'Administration des Affaires.") is a non-profit business school that maintains campuses in Europe (Fontainebleau, France), Asia (Singapore), the Middle East (Abu Dhabi, UAE), and North America (San Fran ...
Innovation Efficacy Index *
International Innovation Index The International Innovation Index is a global index measuring the level of innovation 190px, 1,093_U.S._patents_in_his_name..html" ;"title="phonograph">Thomas Edison with phonograph. Edison was one of the most prolific inventors in history, h ...
, produced jointly by
The Boston Consulting Group Boston Consulting Group (BCG) is an American management consulting firm founded in 1963, headquartered in Boston, Massachusetts. The firm is the second largest consulting firm by revenue and one of the most prestigious in the world. BCG has been ...
, the
National Association of Manufacturers The National Association of Manufacturers (NAM) is an advocacy group headquartered in Washington, D.C., United States, with additional offices across the country. It is the nation's largest manufacturing industrial trade association, representing ...
(NAM) and its nonpartisan research affiliate The Manufacturing Institute, is a worldwide index measuring the level of innovation in a country; NAM describes it as the "largest and most comprehensive global index of its kind" *Management Innovation Index – Model for Managing Intangibility of Organizational Creativity: Management Innovation Index * NYCEDC Innovation Index, by the New York City Economic Development Corporation, tracks New York City's "transformation into a center for high-tech innovation. It measures innovation in the City's growing science and technology industries and is designed to capture the effect of innovation on the City's economy" * OECD Oslo Manual is focused on North America, Europe, and other rich economies * State Technology and Science Index, developed by the
Milken Institute The Milken Institute is an independent economic think tank A think tank, or policy institute, is a research institute A research institute, research centre, or research center is an establishment founded for doing research. Research institute ...
, is a U.S.-wide benchmark to measure the science and technology capabilities that furnish high paying jobs based around key components * World Competitiveness Scoreboard


Rankings

Common areas of focus include:
high-tech High technology (high tech) or frontier technology (frontier tech) is technology Technology ("science of craft", from Ancient Greek, Greek , ''techne'', "art, skill, cunning of hand"; and , ''wikt:-logia, -logia'') is the sum of Art techni ...

high-tech
companies,
manufacturing Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector ...
,
patent A patent is a type of intellectual property Intellectual property (IP) is a category of property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depe ...

patent
s, post secondary education,
research and development Research and development (R&D, R+D), known in Europe Europe is a continent A continent is any of several large landmasses. Generally identified by convention (norm), convention rather than any strict criteria, up to seven geogra ...
, and research personnel. The left ranking of the top 10 countries below is based on the 2020
Bloomberg Innovation Index Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan Midtown Manhattan is the central portion of the New York City borough of Manhattan Manhattan (), known regionally as the ...
. However, studies may vary widely; for example the
Global Innovation Index The Global Innovation Index is an annual ranking of countries by their capacity for, and success in, innovation. It was started in 2007 by INSEAD and ''World Business'', a British magazine. Until 2021 it was published by the World Intellectual ...

Global Innovation Index
2016 ranks
Switzerland , french: Suisse(sse), it, svizzero/svizzera or , rm, Svizzer/Svizra , government_type = Federalism, Federal semi-direct democracy under an assembly-independent Directorial system, directorial republic , leader_title1 = Fe ...

Switzerland
as number one wherein countries like South Korea, Japan, and China do not even make the top ten.


Rate of innovation

In 2005 Jonathan Huebner, a physicist working at the Pentagon Building, Pentagon's Naval Air Weapons Station China Lake, Naval Air Warfare Center, argued on the basis of both U.S.
patent A patent is a type of intellectual property Intellectual property (IP) is a category of property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depe ...

patent
s and world technological breakthroughs, per capita, that the rate of human technological innovation peaked in 1873 and has been slowing ever since. In his article, he asked "Will the level of technology reach a maximum and then decline as in the Dark Ages?" In later comments to ''New Scientist'' magazine, Huebner clarified that while he believed that we will reach a rate of innovation in 2024 equivalent to that of the Dark Ages (historiography), Dark Ages, he was not predicting the reoccurrence of the Dark Ages themselves. John Smart criticized the claim and asserted that technological singularity researcher Ray Kurzweil and others showed a "clear trend of acceleration, not deceleration" when it came to innovations. The foundation replied to Huebner the journal his article was published in, citing Second Life and eHarmony as proof of accelerating innovation; to which Huebner replied. However, Huebner's findings were confirmed in 2010 with U.S. Patent Office data. and in a 2012 paper.


Innovation and development

The theme of innovation as a tool to disrupting patterns of poverty has gained momentum since the mid-2000s among major international development actors such as DFID, Gates Foundation's use of the Grand Challenge funding model, and USAID's Global Development Lab. Networks have been established to support innovation in development, such as D-Lab at MIT. Investment funds have been established to identify and catalyze innovations in developing countries, such as DFID's Global Innovation Fund, Human Development Innovation Fund, and (in partnership with USAID) the Global Development Innovation Ventures. The United States has to continue to play on the same level of playing field as its competitors in federal research. This can be achieved being strategically innovative through investment in basic research and science".


Government policies

Given its effects on efficiency, quality of life, and productivity, productive growth, innovation is a key driver in improving society and economy. Consequently, policymakers have worked to develop environments that will foster innovation, from funding
research and development Research and development (R&D, R+D), known in Europe Europe is a continent A continent is any of several large landmasses. Generally identified by convention (norm), convention rather than any strict criteria, up to seven geogra ...
to establishing regulations that do not inhibit innovation, funding the development of innovation clusters, and using public purchasing and standardisation to 'pull' innovation through. For instance, experts are advocating that the U.S. federal government launch a National Infrastructure Foundation, a nimble, collaborative strategic intervention organization that will house innovations programs from fragmented silos under one entity, inform federal officials on innovation performance measurement, performance metrics, strengthen industry-university partnerships, and support innovation economic development initiatives, especially to strengthen business cluster, regional clusters. Because clusters are the geographic incubators of innovative products and processes, a cluster development grant program would also be targeted for implementation. By focusing on innovating in such areas as precision
manufacturing Manufacturing is the creation or Production (economics), production of goods with the help of equipment, Work (human activity), labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector ...
, information technology, and clean energy, other areas of national concern would be tackled including government debt, carbon footprint, and oil dependence. The U.S. Economic Development Administration understand this reality in their continued Regional Innovation Clusters initiative. The United States also has to integrate her supply-chain and improve her applies research capability and downstream process innovation. Many countries recognize the importance of innovation including Japan's Ministry of Education, Culture, Sports, Science and Technology (MEXT); Germany's Federal Ministry of Education and Research; and the Ministry of Science and Technology of the People's Republic of China, Ministry of Science and Technology in the People's Republic of China. Russia's innovation programme is the Medvedev modernisation programme which aims to create a diversified economy based on high technology and innovation. The Government of Western Australia has established a number of innovation incentives for government departments. Landgate was the first Western Australian government agency to establish its Innovation Program. Some regions have taken a proactive role in supporting innovation. Many regional governments are setting up innovation agencies to strengthen regional capabilities. In 2009, the municipality of Medellin, Colombia created Ruta N to transform the city into a knowledge city.


See also

* Communities of innovation * Creative problem solving * Diffusion (anthropology) * Ecoinnovation * Hype cycle * Induced innovation * Information revolution * Innovation leadership * Innovation system * International Association of Innovation Professionals * ISO 56000 * Knowledge economy * Obsolescence * Open Innovation * Open Innovations (Forum and Technology Show) * Outcome-Driven Innovation * Participatory design * Pro-innovation bias * Sustainable Development Goals#Description and agenda, Sustainable Development Goals (Agenda 9) * Technology Life Cycle * Technological innovation system * Theories of technology * Timeline of historic inventions * Toolkits for User Innovation * UNDP Innovation Facility * Virtual product development


References


Further reading

* Bloom, Nicholas, Charles I. Jones, John Van Reenen, and Michael Webb. 2020.
Are Ideas Getting Harder to Find?
, ''American Economic Review'', 110 (4): 1104–44. * * {{Authority control Innovation, Design Innovators, Innovation economics Product management Science and technology studies