What is Innovation?
Innovation is described in many different ways, meaning that it can seem vague and even confusing.
Here are examples of different definitions:
“The process that translates knowledge into economic growth and social well-being. It encompasses a series of scientific, technological, organisational, financial and commercial activities.” (Australian Research Council, 2011)
“The successful generation, development and implementation of new and novel ideas.” (Katz, 2006)
“The OECD definition focuses on what is innovated – product, process, marketing or organisation – rather than how or why people or organisations choose to use an innovation, or how an innovation might be produced.” (OECD, 2005)
“An innovation is an idea, practice or object that is perceived as new by an individual or other object of adoption. It matters little, so far as human behaviour is concerned, whether or not an idea is ‘objectively’ new as measured by the lapse of time since its first use or discovery.” (Rogers, 1962, p. 12)
As a species, humans have always innovated as it evolved. Most recent innovation activity has been conceptualised by Rothwell by generations since the 1950s to present day (Entekhabi and Arabshahi, 2012; Callaghan, 2019).
1950s-1970s: First and second generation (Linear models): Market pull and technology push; at this time technology drove innovation. From approximately 1965, market pulls were influencing innovation that spurred competition for market share.
1970s-1980s: Third generation (Coupling model): Technology and market influences were both influencing innovation. There was Interaction between different elements and feedback loops between first and second generation models were present.
1980s-1990s: Fourth generation (Parallel model): Innovation is integrated within the business, going upstream with key suppliers and travelling downstream with demanding and active customers, with emphasis on alliances.
1990s>: Fifth generation: Systems integration and extensive networking. The application of technology in its vertical and horizontal alliances are to be flexible in responding to the market.
Building on the work from Rothwell is Callaghan’s idea of the sixth generation of innovation, which “describes certain regularities that underlie the emergence of recent discourse around the ‘fourth industrial revolution’ (Schwab & Samans, 2016), ‘fourth paradigm of scientific research’ (Gray, 2009) and incorporates them into Rothwell’s (1994) theoretical model where wider impacts can be seen on jobs and work systems.
Fourth Industrial Revolution
The fourth industrial revolution covers developments in artificial intelligence, biotechnology, genetics, robotics, 3D printing and nanotechnology. If these types of technologies are able to ultimately push the cost and time dimensions of production much closer to the origin, then 6G would be expected to contribute to much more cost effective innovation (Schwab & Samans, 2016).
The idea of the sixth generation of innovation models for continuous innovation is also proposed by Barbieri and Alveres (2016). Here, the sixth generation of innovation is thought to be based on innovation systems and interaction networks as well as the innovation milieu.
“The innovative milieu is a creative combination of generic knowledge and specific competencies, as well as a territorial organization and an essential component of the technical and economic creative process. Among its important features is the ease of contact and trust between partners and social, cultural and natural conditions, such as the leisure, education, health, climate and quality of life options for the residents” (Marinova & Phillimore, 2003, pp. 50–51).
The sixth generation of innovation shows us that the ideas of the fourth industrial revolution and the fourth paradigm of scientific research will take innovation and our capabilities through technological abilities much further with wider impacts. Through collaboration and partnerships and creative processes, innovation can be applied and implemented widely for the benefit of society and the environment.
How does this apply to my business?
This can give you a bit of context as to how the different ways of innovating may be impacting and influencing on how you’re currently innovating. Plus, it can be interesting to learn how innovation used to work and how innovation is currently being approached to learn from this.
