Innovation

The term innovation may refer to both radical and incremental changes in thinking, in things, in processes or in services (Mckeown, 2008). Invention that gets out in to the world is innovation. In many fields, something new must be basically different to be innovative, not an insignificant change, e.g., in the arts, economics, business and government policy. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increase productivity is the fundamental source of increasing wealth in an economy (Moore, 1995).

Innovation is an important topic in the study of economics, business, technology, sociology, and engineering. Colloquially, the word "innovation" is often used as synonymous with the output of the process. While innovation is also considered a major driver of the economy, the factors that lead to innovation are also considered to be critical to policy makers. Innovation has also many definitions. According to The Oxford American Thesaurus of Current English (1999): innovation means “new method/device/measure, introduction, modernism, modernization, novelty, change, alteration, variation, transformation, metamorphosis, renovation, restyling, recasting, remodeling, coining, neology, neologism.” furthermore, Webster’s Third New International Dictionary (1993) defines innovation as “the introduction of something new” and as “something that deviates from established doctrine or practice : something that differs from existing forms.” Similarly, Oxford describes innovation as “the alteration of what is established by the introduction of new elements or forms.”

The organizational situation, innovation may be linked to performance and growth through progression in efficiency, quality, productivity, market share, competitive positioning, etc. All organizations can innovate, including for example hospitals, universities, and local governments....