Table 1 Types of innovation, definitions... | Emerald Publishing

Table 1

Types of innovation, definitions and characteristics

Type of innovation	Definition	Innovation characteristics
Product innovation	It is the introduction of a new or significantly improved good or service in terms of its characteristics or intended uses. It can add new knowledge or be based on new uses or combinations of existing knowledge or technologies	May include significant improvements in technical specifications, components, and materials, embedded software, ease of use and other functional capabilities
Process innovation	It is the implementation of a new or significantly improved production method	It aims to reduce production or distribution costs, improve quality or even produce or distribute new or improved processes
Marketing innovation	It is the implementation of a new marketing system with changes in product design or packaging, product positioning, promotional strategy or pricing	It aims to meet the needs of consumers, open new markets, or reposition a company’s product, aiming at increasing sales. It may include new sales channels and substantial design changes that do not alter their functional characteristics or product packaging
Organizational innovation	It is the implementation of a new organizational method in the company’s business practices, reorganizing the way of doing business or even external relations	It aims to improve a company’s performance by reducing costs, whether administrative or transaction, stimulating satisfaction in the workplace, leading to improved productivity, fostering new relationships and technologies

Type of innovation	Definition	Innovation characteristics
Product innovation	It is the introduction of a new or significantly improved good or service in terms of its characteristics or intended uses. It can add new knowledge or be based on new uses or combinations of existing knowledge or technologies	May include significant improvements in technical specifications, components, and materials, embedded software, ease of use and other functional capabilities
Process innovation	It is the implementation of a new or significantly improved production method	It aims to reduce production or distribution costs, improve quality or even produce or distribute new or improved processes
Marketing innovation	It is the implementation of a new marketing system with changes in product design or packaging, product positioning, promotional strategy or pricing	It aims to meet the needs of consumers, open new markets, or reposition a company’s product, aiming at increasing sales. It may include new sales channels and substantial design changes that do not alter their functional characteristics or product packaging
Organizational innovation	It is the implementation of a new organizational method in the company’s business practices, reorganizing the way of doing business or even external relations	It aims to improve a company’s performance by reducing costs, whether administrative or transaction, stimulating satisfaction in the workplace, leading to improved productivity, fostering new relationships and technologies

Source(s): Oslo Manual (OECD, 2005)