Q Analyse the difference between innovation and invention. Using appropriate theories, discuss whether a firm can be innovative without being inventive?

Tips for good answer: Invention is the derivation of new ideas, whereas innovation is applying these to markets. Some even say an innovation needs to be a commercial success. As a result the question seeks the difference between just having new ideas and the ability to apply those to products. Answers need to go on and classify different types of innovation. Many ways were talked of in the course, including Tidd$$s views: Architectural innovation $$ defines the basic configuration of the product and process, and also sets the production and marketing agendas.

Market niche innovation $$ the application of existing technology to open new markets. This type of innovation entrenches the existing

production and marketing systems.

Regular innovation $$ this type builds on established technical and production skills and is applied to existing markets and customers further entrenching existing competences.

Revolutionary innovation $$ this type of innovation disrupts and makes existing technical knowledge and production methods obsolete.

However, the innovation is made available to existing customers and established market structures.

Abernathy and Clark $(1985)$ have placed these notions on a grid which allows the interaction of innovation type with the market to be

assessed.

Answers must note that invention alone is not a good strategy as it misses out the commercialisation step, but there are firms which make living out of inventing and then selling this to others to innovate.