This document discusses the importance and impact of technological innovation. It defines technological innovation as the introduction of new devices, methods, or materials for commercial applications. Globalization has increased the importance of innovation, putting pressure on firms to continuously innovate and develop differentiated products to compete. While innovation makes business success more complicated, its overall impact on society is positive by enabling a wider range of goods and services worldwide and improving areas like food production, medicine, and communication. The document also discusses how a small percentage of innovative ideas typically result in successful new products and the importance for firms to have a clear innovation strategy aligned with their objectives and resources.