This document discusses innovation and its relationship to invention. It defines innovation as putting new ideas into action commercially, while invention is the discovery of new ideas. Innovation drives economic growth by creating new business models and replacing outdated ones. There are two main types of innovation: product innovation which makes changes to product characteristics, and process innovation which improves production efficiency. Innovation provides business benefits such as improved productivity, quality, and competitive differentiation. Factors that drive innovation include competition, entrepreneurship, research and development, intellectual property protection, and cooperation between organizations.