2. Invention or innovation?
Invention Innovation
Practical application of new
Formulation of new ideas for
inventions into marketable
products or processes
products or services
4. Types of innovation
• Product innovation
– Launching new or improved products (or
services) on to the market
• Process innovation
– finding better or more efficient ways of
producing existing products, or delivering
existing services
5. Product innovation - advantages
• ‘First mover advantage’ – which can
include some of the following;
• Higher prices and profitability
• Added value
• Opportunity to build early customer
loyalty
• Enhanced reputation as an
innovative company
• Public Relations – e.g. news
coverage
• Increased market share
6. Process innovation - advantages
• Reduced costs
• Improved quality
• More responsive
customer service
• Greater flexibility
• Higher profits
7. Benefits of innovation
• Improved productivity & reduced
costs
• Building a brand
• Establishing an advantage over
competitors
• Higher sales and profits
8. Protecting an invention - patents
• To be protected by a patent, the invention
must be:
• New
• An innovative step (i.e. not obvious to
other people with knowledge of the
subject)
• Capable of industrial application (i.e. it can
be made and used!)
• Not be excluded (certain inventions don't
count - e.g. scientific theories, artistic
creations)