To obtain higher returns from innovation activities, innovations are classified. The need for classification, i.e. dividing the entire set of innovations according to certain criteria into appropriate groups is explained by the fact that the choice of an object of innovation is a very important procedure, since it predetermines all subsequent innovation activities, the result of which will be an increase in production efficiency, an expansion of the range of high-tech products and an increase in their volumes.
Classification of innovations means their distribution into specific groups according to certain criteria. The construction of a classification scheme begins with the definition of classification characteristics. The classification sign is a distinctive property of a given group of innovations, its main feature.
Classification can be carried out according to different schemes, using different classification criteria. The economic literature presents a variety of approaches to the classification of innovations, as well as to the identification of its criteria. Let us consider the proposed classifications in more detail.
Researcher G. Mensch distinguishes between basic, improving innovations (promoting the emergence of new industries and new markets) and “pseudo-innovations” - imaginary innovations (improving the quality of an object or slightly changing elements of the technological process).
Russian researcher Yu. V. Yakovets developed the views of G. Mensch and proposes to distinguish the following types of innovations:
1) basic innovations, which implement major inventions and become the basis for revolutionary revolutions in technology, the formation of new directions, and the creation of new industries;
2) improving innovations, which involve the implementation of mid-level inventions and serve as the basis for the creation of new models and modifications of a given generation of equipment (technology), replacing outdated models with more efficient ones, or expanding the scope of application of this generation, as well as significantly modifying the technologies used;
3) micro-innovations that improve individual production or consumer parameters of manufactured models of equipment and applied technologies based on the use of small inventions, which contributes to more efficient production of these models or increased efficiency of their use;
4) pseudo-innovations, which, according to Yu. V. Yakovets, are aimed at improving models of machines and technologies that represent yesterday’s technology.
It should be noted that the approaches of G. Mensch and Yu. V. Yakovets focus on considering exclusively technological innovations, while using the only classification criterion, which is the degree of radicality of the innovation, the level of its novelty, therefore both these approaches to the classification of innovations are substantially limited in nature.
In light of this, it should be noted that a number of Russian scientists propose approaches based on a multi-criteria classification of innovations. These may include the approaches of P.N. Zavlin and A.V. Vasiliev, V.V. Gorshkov and E.A. Kretova, E.A. Utkina, G.I. Morozova and N.I. Morozova, S. D. Ilyenkova.
P.N. Zavlin and A.V. Vasiliev propose a classification of innovations based on seven classification criteria: scope, stages of scientific and technical progress, degree of intensity, pace of innovation, scale of innovation, effectiveness, efficiency of innovation.
Classification of innovations according to P.N. Zavlin and A.V. Vasiliev
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Classification feature |
Classification groupings of innovations |
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1. Scope of application. |
Managerial, organizational, social, industrial, etc. |
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2. Stages of scientific and technological progress, the result of which was innovation. |
Scientific, technical, technological, design, production, information. |
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3. Degree of intensity. |
“Boom”, uniform, weak, massive. |
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4. Rate of innovation. |
Fast, slow, fading, increasing, uniform, spasmodic. |
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5. Scale of innovation. |
Transcontinental, transnational, regional, large, medium, small. |
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6. Effectiveness. |
High, low, medium. |
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7. Efficiency of innovation. |
Economic, social, environmental, integral. |
V.V. Gorshkov and E.A. Kretov uses two characteristics as the basis for the classification scheme of innovation: structural characteristics and target changes.
From the point of view of structural characteristics, innovations are divided into three groups:
innovations at the “entrance” of the enterprise;
innovations at the “exit” of the enterprise;
innovation of the enterprise structure as a system that includes individual elements and mutual connections between them.
According to the target change, innovations are divided into innovations:
technological (Creation and development of new products, technologies, materials, modernization of equipment, reconstruction of industrial buildings and their equipment, implementation of environmental protection measures.),
production (expansion of production capacity, diversification production activities, changes in the structure of production and the ratio of the capacities of individual production units.),
economic (Changing methods and methods of planning all types of production economic activity, decrease production costs and improvement of final results, increased economic incentives and material incentives for workers, rationalization of the cost calculation system.),
trading (Use of methods pricing policy in relationships with suppliers and customers, offering new products and services, providing or collecting financial resources in the form of loans, loans, the use of new methods of distribution of profits and other accumulated resources, etc.),
social (Improving the conditions and nature of work, social security, services provided, the psychological climate and the nature of relationships at the enterprise or between its individual organizational units.)
innovations in the field of management (Improving the organizational structure, style and methods of decision-making, the use of new means of information processing and documentation, rationalization clerical work etc.)
Other features are included in the classification of innovations by E.A. Utkin, G.I. Morozova, N.I. Morozova. In their opinion, the classification characteristics of innovation are the reason for the emergence of innovation, the subject and scope of application of the innovation, and the nature of the needs being satisfied.
Classification of innovations according to E.A. Utkin, G.I. Morozova, N.I. Morozova
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1. Cause of occurrence |
1.1. Reactive. |
1.2. Strategic. |
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1.1. Ensure the survival of a company or bank in response to new transformations carried out by a competitor in order to be able to compete in the market. |
1.2. Their implementation is proactive in nature in order to obtain decisive competitive advantages in the future. |
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2. Subject and scope of application. |
2.1. Grocery. |
2.1. New products and services. |
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2.2. Market. |
2.2. Opening new areas of application of the product, as well as allowing the sale of the service in new markets. |
|
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2.3. Innovation-processes. |
2.3. Technology, production organization and management processes. |
|
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3. The nature of the needs being satisfied. |
3.1. Focus on existing needs. |
3.1. Current needs that are not fully or partially satisfied. |
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3.2. Focus on the formation of new needs. |
3.2. Needs for the future, which may appear under the influence of factors changing the tastes and interests of people, their needs, etc. |
S.D.'s approach Ilyenkova’s approach to the classification of innovations in a certain way echoes the considered approaches of G. Mensch and Yu. V. Yakovets. This is due to the fact that S.D. Ilyenkova, as one of the criteria for her classification, designates the depth of changes made and distinguishes radical (basic), improving and modifying innovations. The main difference between the classification of innovations according to S. D. Ilyenkova and the approaches of G. Mensch and Yu. V. Yakovets is that the designated classification is multi-criteria and provides for the identification of groups of progressive innovations, not only based on the depth of the changes made, but also with from the point of view of such criteria as technological parameters, novelty, place in the enterprise and field of activity.
In addition, it should be noted that place in the enterprise as a classification characteristic within the framework of the approach of S.D. Ilyenkova is actually similar in meaning to the structural characteristics of innovations identified as a classification criterion by V.V. Gorshkov and E.A. Kretova.
Classification of innovations according to S.D. Ilyenkova
I.T. Balabanov offers us the following classification.
The most detailed and original typology, in our opinion, was given by A.I. Prigogine. He proposed to classify innovations:
1. By prevalence:
* single;
* diffuse.
2. Locally production cycle:
* raw materials;
* providing (binding);
* grocery.
3. By succession:
* substituting;
* canceling;
* returnable;
* opening;
* retro-introductions.
4. By coverage of the expected market share:
* local;
* system;
* strategic.
5. By innovative potential and degree of novelty:
* radical;
* combinatorial;
* perfecting.
P.N. Zavlin suggests taking the following criteria as the basis for classification:
by importance;
by direction;
by industry structure life cycle;
by depth of change; in relation to development;
by scale of distribution;
by role in the production process;
by the nature of the needs being satisfied;
by degree of novelty;
by time to market;
for reasons of occurrence;
by subject;
by area of application;
Stepanenko D.M. considers it appropriate to consolidate the following sequence of criteria for the classification of progressive innovations and the corresponding types of innovations:
1. Level of novelty of innovation:
1.1. radical innovation;
1.2. improving innovations.
2. The scale of novelty of innovation:
2.1. innovations that are new on a global scale;
2.2. innovations new in the republic;
2.3. innovations new to the industry in the republic;
2.4. innovations new to the enterprise.
3. Nature of innovation:
3.1. product innovation;
3.2. process innovation;
3.3. organizational innovation;
3.4. economic innovation;
3.5. social innovation.
4. Frequency of application of innovation:
4.1. one-time innovations;
4.2. iterative innovation.
5. The sphere of the national economy where innovation is being introduced:
5.1. material production;
5.2. science;
5.3. service sector;
5.4. social sphere.
6. Scope of innovation:
6.1. innovations for internal use at the enterprise;
6.2. innovations for accumulation in the enterprise;
6.3. innovations intended for sale.
7. Form of innovation:
7.1. discoveries, inventions, patents;
7.2. rationalization proposals;
7.3. know-how;
7.4. trademarks, trademarks, emblems;
7.5. new documents describing technological, production management processes, designs, structures, methods.
8. Type of effect obtained as a result of innovation:
8.1. economic;
8.2. ecological;
8.3. scientific and technical;
8.4. social;
8.5. integral.
When considering various approaches to the classification of innovations, it is necessary to take into account that the generalization and systematization of classification characteristics and the creation on this basis of a scientifically based classification of innovations has significant practical significance, since it has the potential to provide a detailed understanding of the characteristics of a particular progressive innovation.
Of course, these classifications are not exhaustive, but it should be noted that various types of innovation are closely interrelated. The classification provides specialists with a basis for identifying the maximum number of ways to implement innovations, thereby creating a variety of solutions.
Innovation (innovation)– created, mastered new or improved technologies, types of goods, products and services, as well as organizational and technical solutions of a production, administrative, commercial or other nature that contribute to the promotion of technologies of goods, products or services to the market.
Innovations developed but not put into practice are called Novation.
Innovation- the final result of innovation activity, implemented in the form of a new or improved technological process, technology, goods, services.
Purpose of innovation: satisfaction of needs.
Types of innovation:
1.Technological - obtaining new or efficient production existing product, product, technology, new or improved technological processes. Innovations in the field of organization and production management are not technological.
2. Social (process) - the process of updating spheres of human life in the reorganization of society (pedagogy, management system, charity, service, process organization).
3.Grocery- creation of products with new and useful properties.
4.Organizational- improvement of the management system.
5.Marketing- implementation of new or significantly improved marketing methods, covering significant changes in the design and packaging of products, the use of new methods of sales and presentation of products (services), their presentation and promotion to markets, the formation of new pricing strategies.
Classification of innovations:
| Classification sign | Types of innovation |
| Degree of radicality (novelty, originality, etc.) | 1. Radical (pioneer, basic, etc.) 2. Ordinary (new technical solutions, inventions) 3. Improving (modernization) |
| Nature of application | 1. Product – include the use of new materials, new semi-finished products and components; obtaining fundamentally new products. 2. Process (operational) means new methods of organizing production (new technologies). |
| Stimulus of appearance (source) | 1. Caused by the development of science and technology 2. Caused by the needs of production 3. Caused by the needs of the market |
| Place in the system (in an enterprise, in a company) | 1. Innovations at the input of the enterprise (raw materials, equipment, information, etc.) 2. Innovations at the output of the enterprise (products, services, technologies, information, etc.) 3. Innovations of the system structure of the enterprise (managerial, production) |
| Purpose of innovation | 1.For the producer and consumer 2.For society as a whole 3.For the local market |
Sources of Innovation
Theorists have identified the following sources of innovation:
Internal sources (originating within an industry or organization)
1) Unexpected event (success, failure, event in the external environment)
2) Incongruity - discrepancy or discrepancy between reality and its reflection in our opinions and assessments
3) Needs production process
4) Sudden changes in industry and market structure that “took everyone by surprise”
External sources(occur outside the enterprise or industry):
5) Demographic changes
6) Changes in consumer perception and sentiment
7) New knowledge (scientific or non-scientific)
Of the 7 types, the most important are 3 and 7, because they are of the most radical nature.
Implementing source type 3 requires understanding that:
a) it is not enough to define the need; it is important to understand its essence;
b) it is not always possible to satisfy a need; in this case, a solution to some part of it remains.
The most radical changes occur on the basis of new knowledge. These innovations tend to be difficult to manage. This is due to: a) there is a large gap between the emergence of new knowledge and its technological use, b) a lot of time passes before new technology materializes in a new product, process or service. An innovation based on new knowledge must “ripe” and be accepted by society. Only in this case will it bring success. In the sphere of commodity circulation, new ideas are formed, as a rule, under the influence of consumer opinions about possible ways to satisfy their needs. Wide contacts with consumers allow us to form a larger portfolio of new ideas, reduce the time for searching for new solutions, and provide a flexible response to changes in the competitive environment.
There are also other sources of innovative ideas:
1. Consumers. Development of needs requires deep learning consumer demand and consumer behavior;
2. Scientists. Those engaged in inventions or searches for new materials with commercial properties that can lead to the creation of original or improved versions commercial products or services;
3. Competitors. Their actions may lead to the birth of a new idea;
4. Sales agents, dealers and other intermediaries;
5. Enterprise consultants on certain elements of activity;
6. Direct employees of the organization.
14. Trade innovation: essence, properties, functions
Trade innovation represents the implementation of targeted economic, technical, social, organizational changes trading activities, consumer behavior in order to obtain the appropriate effect.
Trading Innovation inherent properties:
Ø compatibility– characterizes the potential possibility of using innovations with the inextricable relationship between production and consumption systems.
Ø mobility– reflects the functional dependence of trade innovation on time and space, its locality and dispersion.
Ø efficiency– is associated with the significance of the communication component of a possible innovation.
Ø commercial feasibility– determined by the potential profitability of the innovation, taking into account possible risks;
Ø safety– is expressed in guaranteeing the safety of people when using innovation;
Ø value– characterizes novelty, potential usefulness and competitiveness.
The essence of innovation is manifested in its functions :
1. reproductive– innovation is an important source of financing for expanded reproduction, its meaning is to make a profit from innovative activity and use it as a source of financial resources.
2. investment– profit received from the implementation of innovation can be used in various ways, including as capital. This capital can be used to finance new types of innovation. Thus, the use of profits from innovation for investment constitutes the content of this function.
3. stimulating– innovations bring entrepreneurial income, which serves as an incentive for the introduction of new innovations, and encourages constant study of demand and improvement of the organization marketing activities, apply modern methods financial management.
Functions according to her outline:
Innovation is a channel for implementing the achievements of human intelligence, scientific and technological results, promoting intellectualization labor activity, increasing its knowledge intensity (a pattern of growing intellectualization of society as it moves from stage to stage);
With the help of innovation, the range of products and services produced is expanded, their quality is improved, which contributes to the growth of the needs of each person and society as a whole and the satisfaction of these needs (the law of elevation and differentiation of needs);
Innovations make it possible to involve new productive forces in production, to produce products and services with less labor, materials, and energy (the law of labor saving);
The concentration of innovations in one area or another helps to bring the structure of reproduction into line with the structure external environment(law of proportionality of development).
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
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Essence and classification of innovations. Necessary conditions for innovation and the creation of an innovative atmosphere in the enterprise. Risks of innovation activity. Practical development of conditions for innovation using the example of the travel agency "Avantage-Tour".
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Characteristics of the main types of innovation strategies, their features and conditions of application. Strategies carrying out R&D and strategies for introducing and adapting innovations. Calculation of leasing payments under a leasing agreement for the implementation of an innovative project.
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Methodological basis for the development and implementation of organizational innovations. Analysis of mechanisms of organizational support for innovation, their legal and regulatory basis. Assessing the role and importance of introducing innovations in an enterprise at the present stage.
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The essence of innovation processes. Methods of managing, mastering and disseminating innovations. Analysis of innovation management, consideration of innovations using the example of KaroStroyService OJSC. Directions of the enterprise's activities, development strategies.
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Concepts and relevance of innovation activities. Modern concepts theories of innovation. Life cycle concept. Concept and types of innovation strategies. Innovative aspect of basic strategies. Classification, definition of types of competitive behavior.
Innovative management Bandurin Alexander Vladimirovich
2.1. Types of innovations and their classification
Control innovation activities can be successful subject to long-term study of innovations, which is necessary for their selection and use. First of all, it is necessary to distinguish between innovations and minor changes in products and technological processes(for example, aesthetic changes, i.e. color, etc.); minor technical or external changes in products that leave the design unchanged and do not have a sufficiently noticeable impact on the parameters, properties, cost of the product, as well as the materials and components included in it; expansion of the product range by mastering the production of products that were not previously produced at this enterprise, but are already known on the market, with the goal. Satisfy current demand and increase enterprise income.
The novelty of innovations is assessed based on technological parameters, as well as from market positions. Taking this into account, a classification of innovations is constructed.
Depending on technological parameters, innovations are divided into product and process.
Product innovations include the use of new materials, new semi-finished products and components; obtaining fundamentally new products. Process innovation means new methods of organizing production (new technologies). Process innovation can be associated with the creation of new organizational structures as part of an enterprise (firm).
Based on the type of novelty for the market, innovations are divided into: new to the industry in the world; new to the industry in the country; new for a given enterprise (group of enterprises).
If we consider an enterprise (firm) as a system, we can distinguish:
1. Innovation at the entrance to the enterprise (changes in the selection and use of raw materials, materials, machinery and equipment, information, etc.);
2. Innovations coming out of the enterprise (products, services, technologies, information, etc.);
3. Innovation of the system structure of the enterprise (managerial, production, technological).
Depending on the depth of changes made, innovations are distinguished:
* radical (basic);
* improving;
* modification (private).
The listed types of innovations differ from each other in the degree of coverage of life cycle stages.
Russian scientists from the Research Institute for System Research (RNIISI) have developed an expanded classification of innovations, taking into account the areas of activity of the enterprise, in which innovations are highlighted:
* technological;
* production;
* economic;
* trading;
* social;
* in the field of management.
A fairly complete classification of innovations was proposed by A. I. Prigozhin:
1. By prevalence:
* single
* diffuse.
Diffusion is the dissemination of an innovation that has already been mastered in new conditions or on new objects of implementation. It is thanks to diffusion that the transition occurs from a single introduction of innovation to innovation on an economy-wide scale.
2. By place in the production cycle:
* raw materials
* providing (binding)
* grocery
3. By succession:
* substitute
* canceling
* returnable
* opening
* retro introductions
4. By coverage:
* local
* system
* strategic
5. By innovative potential and degree of novelty:
* radical
* combinatorial
* improving
The last two directions of the classification, taking into account the scale and novelty of innovation, the intensity of innovative change, most express the quantitative and qualitative characteristics of innovation and are important for economic assessment their consequences and rationale for management decisions.
The original innovative observation was made by N.D. Kondratiev in the 20s, who discovered the existence of so-called “large cycles” or, as they are called abroad, “long waves”. N. D. Kondratiev pointed out the existence of a relationship between long waves and the technical development of production, drawing on data on scientific and technical discoveries for analysis, showing the wave-like nature of their dynamics. He explored the dynamics of innovation, distinguishing it from discoveries and inventions. The dynamics of innovations are studied in the context of the phases of a large cycle. In the studies of N. D. Kondratiev, the foundations of the so-called cluster approach are first seen. N. D. Kondratiev showed that innovations are distributed unevenly over time, appearing in groups, that is, in modern terms, clusters. The recommendations of N. D. Kondratiev can be used in developing an innovation strategy.
From the book Organizational Behavior: Workshop author Gromova Olga6.9. Practical exercise “Types of information and types of communications” Goal: Develop skills in analyzing various types of communications and consolidate knowledge about what information is transmitted through their channels. Task: Analyze those listed in table. 6.6 types of information transmitted in a message
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From the book True Professionalism by Meister David From the book Innovation Management author Bandurin Alexander VladimirovichCHAPTER II. TYPES OF INNOVATIONS AND ORGANIZATIONAL STRUCTURES OF INNOVATION MANAGEMENT 2.1. Types of innovations and their classification Innovation management can be successful subject to long-term study of innovations, which is necessary for their selection and use.
From the book Steve Jobs. Leadership Lessons author Simon William LLessons from Innovation There are three important lessons to be learned from the history of the iMac about how innovation works: the first is about collaboration, the second is about control, and the third is about increasing employee buy-in. Apple employees often say that the company
Let's look at three main classifications of innovation. The first classification of innovations involves dividing innovations according to the object they are aimed at. This is the main classification. At the same time, they stand out four types of innovation:
Thus, innovations may concern:
Product innovation. From a market point of view, a new product can be understood as several types of product innovations:
In this approach, the definitions are arranged in order of decreasing degree of novelty of the product. Any product existing on the market was once completely new, which meant the absence of any analogues. Currently, such products appear more often in the newest knowledge-intensive industries (telecommunications, biotechnology, military-industrial complex), pharmaceuticals and the service sector. The need to conduct significant fundamental and applied research to create and implement such innovations predetermines the possibility of their implementation only by large firms that have close ties to research institutes and invest in venture structures. A modernized product involves adding quality components to an existing product. technical changes. At the same time, product modification represents only a minor improvement, often aimed at satisfying a more narrowly segmented market. As a rule, this is a purely external change in goods while fully maintaining the same functional richness: new color, design, packaging, smell, etc. Carrying out this kind of innovation represents an expansion of the product line, which in the modern market is an effective competitive advantage. Thus, product innovation includes the development and introduction of the first three types of new product. The remaining two types, namely goods of a new scope and market novelty, belong rather to the next type of innovation - marketing innovations.
By the beginning of the 1980s. the marketing concept was the basis for the activities of most large companies. Market innovations are ahead of other types of innovations in terms of frequency of implementation and versatility. This is explained by their relatively low “cost”, on the one hand, and high variability, on the other. Firms can adopt the most effective marketing strategies and measures used by competitors in the areas of pricing, sales, product and communication policies, or they can introduce something completely new into the practice of marketing activities on a global scale.
Common types of marketing innovations include:
Technological innovation involves the use of new technical and technological methods to increase the efficiency of the production process itself and, as a rule, consists of production automation, the use of a cell system of work, computerization and robotization production lines and optimization of the material and production base. Thus, the object of technological innovation is the various elements of the production mechanism at each stage of the production cycle.
Finally, management innovations began to be actively implemented by companies since the mid-1980s. and were a consequence of the transition to the so-called new management order. The basis of this approach is the use of the principle of maximum effective management company. It is now believed that the highest position in business (market share, profitability, growth rate) is achieved not only and not so much by firms that have made a breakthrough in applied research or having unique competitive advantages, how many companies with a high level of professionalism and know-how in the field of management. Managerial innovations involve, first of all, the restructuring of companies, i.e. changing the entire organizational structure or its individual elements in order to optimize business activities. This should also include the introduction of innovations in forms of staff motivation, principles and methods of remuneration to maximize employee productivity. Equally important is the introduction of new concepts for the development of corporate culture and ideology and bringing them into line with the structure and goals of the organization.
An analysis of management innovations carried out by companies since the early 1990s has shown the effectiveness of introducing simplified organizational structures through a general reduction in management and transition from vertical To horizontal structures. At the same time, there is a balance between the principles of centralization and decentralization, which are based on a clear delineation of management functions.
The transition to matrix management structures with a large number of target units and no duplication of functions in the presence of dual subordination.
This principle is successfully implemented through the development of plural organizational structures, when, along with the primary (main) structure, temporary secondary structural units appear in the form of project groups, quality circles, working groups, etc. High profitability comes from using “teams” (or a system of commands) to perform new business tasks and delegate managerial powers to them. At the same time, a transition is being made from a total quality control (TQC) system to total quality management (TOM) and the formation ideology of quality priority. The logistics system is being revised. The most progressive here is the liquidation of any types of stocks and warehouses, the transition to just-in-time deliveries and the establishment of direct long-term economic relations with suppliers and distributors. Competition for consumers stimulates the release of new products. To achieve this, many companies encourage venture(or risky) entrepreneurship within the company and, in case of successful results, separate structural units are organized.
This classification by object of innovation is based on an integrated approach, which became a logical continuation of the evolution of attitudes towards innovation.
The second classification of innovations, depending on the final result, involves the following types.
Product innovation. This type of innovation is the most understandable to the consumer. This is a way to solve the buyer's problems in the form of creating a new product that provides benefits: a light bulb, a car, a personal computer, mobile phone etc.
Process innovation. This innovation is always “behind the scenes” and is not visible to the consumer. This includes new production methods and new technologies that reduce costs, improve quality, reduce product development and delivery time, etc.
Strategy innovation. Unlike process innovation, which is not visible to the consumer, strategy innovation affects the consumer directly. It involves revising the methods of creating value for the consumer in order to satisfy newly emerging customer needs, increase the value of products, and create new markets and new consumer groups for the company. Its outcome is how the firm changes its target consumer groups and how it enters the market. There are five such innovation strategies:
The third classification of innovations, depending on the impact on profit, includes the following types of innovations.
Incremental (or incremental) innovations have little impact on the organization's profits and represent minor improvements to products or services. They allow you to maintain your existing market share and, as a rule, do not require large financial investments.
Examples: a supermarket chain introduces cashless payments; Airlines have fully reclining seats for sleeping in the first class cabin; Sberbank of Russia introduces electronic queue.
Growth innovation (or significant innovation) increases a company's market share, grows its business, and reduces operating costs. Significant improvements to existing products and services or the introduction of new ones bring noticeable improvements to both the company and its customers.
Examples: expansion of the range; new models of cars and other goods that are more attractive to consumers.
Radical (or revolutionary) innovation has a tangible impact on profits and opens up completely new areas of activity for the organization. Radical innovations often transform economies and disrupt entire industries:
Examples: automatic transmission for car; mobile phone; navigator; personal computer.
Epochal innovations are giant steps forward on the path of humanity, they give rise to entire new industries.
Examples: invention of a method for generating and transmitting electricity; automobile; discovery of penicillin; radio; TV; Internet.
