3. Types of Innovation

1. Product versus Process Innovation

Product innovations are embodied in the outputs of an organization – its goods or services.

Process innovations are innovations in the way an organization conducts its business, such as in techniques of producing or marketing goods or services.

2. Radical versus Incremental Innovation

The radicalness of an innovation is the degree to which it is new and different from previously existing products and processes.

Incremental innovations may involve only a minor change from (or adjustment to) existing practices.

3. Competence-Enhancing versus Competence-Destroying Innovation

Competence-enhancing innovations build on the firm’s existing knowledge base

Competence-destroying innovations renders a firm’s existing competencies obsolete.

4. Architectural versus Component Innovation

A component innovation (or modular innovation) entails changes to one or more components of a product system without significantly affecting the overall design.

An architectural innovation entails changing the overall design of the system or the way components interact.

5.  Technology S-Curves