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Business Definition for: innovation
innovation

use of a new product, service, or method in business practice immediately subsequent to its discovery.

innovation

product, service, or idea that is perceived by consumers as new. There are differing magnitudes of innovation. Adding bran to an established brand of breakfast cereal is considered a continuous innovation in that it constitutes a small change to an existing product with little market impact, as opposed to discontinuous innovations like the personal computer, which caused great societal impact. The public outcry against the "new" Coca-Cola belied the relatively small continuous innovation that it was. An innovative strategy uses continuous innovation to stay one step ahead of the competition.

See also adoption process , early adopter , diffusion , innovator
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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