Invention refers to the development of new ideas and knowledge, or application of existing ideas

to new products. Inventions can be patented, as it provides security to the inventor, for
intellectual property rights, and also identifies it as an actual invention. For example; Apple
introduced wireless air pods and vacuum cleaner was invented by J. Murray Spengler- originally
called as electronic suction sweeper
Invention is the derivation of new ideas, whereas innovation is applying these to markets and
adding value to it. Scientific skills are required in invention while set of marketing, technical and
strategic skills are needed for innovation. Invention occurs when a new idea strikes a scientist,
innovation occurs when a need is felt for a product or improvement in existing one. Invention is
concerned with single product or processes but innovation is a combination of various products
and process. Invention is limited to research and development, on the other hand innovation is
spread across the organization. For example, the electronics company LG invented televisions
but later introduced LED’S.
Innovation is not a single action but a total process of interrelated sub-processes. It is not just
the conception of a new idea, nor the invention of a new device, nor the development of a new
market. The process is all these things acting in an integrated fashion.” (Meyers and Marquis,
reproduced in Trott, 2002) So it is clear that invention is the step of developing something new,
but innovation is much more complex and involves the refinement of the invention, its
manufacturing and developing a successful standing in the market. For example; alloy that
helps to improve the speed of the car as it is light weight and the scale is huge which leads to
cost saving.
Tidd (1993) mentions four types of innovations which are architectural, market niche, regular
and revolutionary innovation.
Architectural innovation refers to the use of new concepts in technology to create new market
linkages and users as well as the reformation of old ones. Innovation of this sort defines the
basic formation of product and process, and establishes the technical and marketing agendas
that will guide eventual developments. In 1966, NASA’s Ames Research Center attempted to
improve the safety of aircraft cushions and succeeded by creating a new type of foam, which
reacts to the pressure applied to it, yet magically forms back to its original shape. Originally it
was commercially marketed as medical equipment table pads and sports equipment. This “slow
spring back foam” technology falls under architectural innovation. It is commonly known as
memory foam.
Market niche innovation is the application of existing technology to open new markets. This type
of innovation strengthens the existing production and marketing systems. In some instances,
niche creation involves a truly trivial change in technology whose impact on productive systems
and technical knowledge is gradual. But this type of innovation may also appear with significant
new product introductions, strong competition on the basis of features, technical refinements,
and even technological shifts. The important point is that these changes build on established
technical competence and improve its applicability in the emerging market segments. The key
skill is sizing up new market opportunities. Management must nurture quick-footed capability to
stay ahead of competitors and strive to get maximum profits. Manufacturing should be quick,
responsive, insure timely delivery, offers responsive service and adequate capacity for a quick
build up.
Regular innovation involves change that builds on established technical and production
competence and is applied to existing markets and customers. The effect of these changes is to
entrench existing skills and resources. "Regular" innovation can have a dramatic aggregate
effect on product cost and performance. The aim is to achieve volume production and use
economies of scale to lower costs and improve products. In the regular Innovation, all
opportunities must be taken to advance quality, improve product features and remove
bottlenecks in the production process.
Revolutionary innovation disrupts and renders established technical and production competence
obsolete, yet is still applied to existing markets and customers. Not all innovations that fall in the
revolutionary quadrant have an intense competitive impact. Some fail to meet market needs
while others encounter production problems. Revolutionary Innovation is dominated by
“Technology Push”. Firm’s management should be capable of sustaining consensus about long-
term goals through investments in new technology and innovation. Good technical insight is
needed along with an aggressive marketing strategy to change the rules of the game in order to
carve out a competitive position.
Abernathy and Clark (1985) have placed these types on a grid which allows the interaction of
innovation type with the market to be assessed. They developed a model for decision makers to
depict a firm’s current and future strategy on innovation and to control the firm’s order of
change. Abernathy & Clark, challenged Schumpeter’s 1942 “creative destruction” view of
innovation and argued that although technological innovation imposes change, this change
need not be disruptive for a company. A firm gains a competitive advantage when it achieves a
position in one of these featured dimensions, or a combination of them that is both valued by
customers and is superior to its competitors.
In 19th century, Graham Bell invented telephone and Henri Becquerel invented the fluorescent
lamp. Google is one of the most prominent computing innovation examples, offering a much
better online experience for consumers. It also is included as one of the biggest breakthrough
innovation examples from its introduction of AdWords which changed the advertising world.
Leading innovative businesses from the around the world, including newcomers like Tata,
Amazon and Rolls Royce.
Due to high levels of competition in the market, a company can only survive when it thinks of
ways to create innovative products and services. However, this does not mean that innovation
alone is important as an invention has to be made for innovation to take place. I believe that
invention and innovation go side by side and it’s important to understand that invention alone is
not a good strategy as it misses out the commercialization step but there are firms which make
living out of inventing and then selling this to others to innovate.