Types of Innovation
Innovation can be categorized in various ways depending on the context and the criteria applied. Here are the common types of innovation:
Types of Innovation Based on the Nature of Change
Radical Innovation: Entails a fundamental and transformative change that revolutionize industries or creates new ones. It often disrupts existing technologies or business models.
Incremental Innovation: Involves small and continuous improvements to existing products or processes.
Types of Innovation Based on Area of Application
Product/Service Innovation: Refers to the introduction of a new product/service or a significant improvement of features or functionality in an existing one.
Process Innovation: Involves changes in the way products or services are produced and delivered, aiming to increase efficiency, quality, or sustainability.
Business Model Innovation: Refers to changes in how a company creates, delivers, and captures value. This may include new ways of interacting with customers, new revenue sources, or new operating models.
Types of Innovation Based on Added Value
Traditionally, innovation was seen primarily through the lens of economic value, but this perspective has recently evolved to include other forms of value, such as social and environmental value.
Social Innovation: Refers to innovations aimed at solving societal issues like inequality, education, or health. These innovations may be products, services, or models that generate social value.
Sustainable Innovation: Focused on developing products and processes that not only provide economic benefits but also address social issues while reducing environmental impact.
Regenerative Innovation: Goes beyond sustainable innovation, as it aims to restore ecosystems and reverse the detrimental socio-environmental damage caused in the past.
Types of Innovation Based on Openness
Closed Innovation: Innovation with the exclusive participation of company members.
Open Innovation: It is based on the idea that companies can and should utilize both internal and external ideas, such as from suppliers, customers, other companies, universities, etc.
Types of Technology-Driven Innovation
Technological Innovation: Involves developing new technologies or applying existing ones in innovative ways to create new products, services, or processes.