The document discusses the differences between invention and innovation. Invention is the formulation of new ideas for products or processes, while innovation is the practical application of new inventions into marketable products or services. It then describes two types of innovation - product innovation which involves launching new products, and process innovation which finds more efficient production processes. The document outlines advantages of both product innovation, such as first mover advantage and increased reputation, and process innovation, like reduced costs and improved quality. Finally, it notes that innovation benefits businesses through improved productivity, higher sales and profits, and establishing competitive advantages.

1. Invention &
Innovation

2. Invention or innovation?
Invention Innovation
Practical application of new
Formulation of new ideas for
inventions into marketable
products or processes
products or services

3. Inventions and innovation
Invention Innovation

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)

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