WHAT IS INNOVATION, AND HOW IS IT DIFFERENT

When asked to define innovation, most people picture an inventor (or a team of inventors) working in some variation of a laboratory coming up with cool, new ideas, technology, etc. (think Thomas Edison and the lightbulb). Invention – the act of creating something new, however, is not the same thing as innovation. Let’s start by defining what we mean by the word “innovation”.

Innovation isn’t a cool gadget that may potentially be viable in the marketplace. Customers have to want (and actually buy) something for it to be an innovation. Thus, an organization needs to not just have a great idea or create something new, but they must also develop and deliver that product or service to market, sell it, and make a sustainable profit. One of the best definitions of innovation I’ve found is from Carlson and Wilmot’s book,

Let’s talk about what that statement means. If we return to the picture of the “inventor” for a moment, Thomas Edison is known for holding more than 1,000 patents (fun side note: He didn’t actually invent the lightbulb. Turns out, more than 20 other people had invented lightbulbs before Edison), which made him a prolific inventor. However, he was also innovative. The reason? He and his team improved upon the invention and built the infrastructure and a practical system to deliver light to customers at an affordable price, creating the model used today to distribute utility power. Invention is necessary, however, bringing that invention to customers is what constitutes an innovation. Said another way, innovation doesn’t stop at a great idea; it brings that solution to the marketplace. (Interesting side note: Many argue that the innovation behind the light bulb was actually Tesla’s, however, Edison is attributed with the innovation, in large part, because he was the better businessman.)


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