Definition of Innovation?

There is no clear definition of the concept of innovation, as Joseph Alois Schumpeter introduced in his book The Theory of Economics Development in 1912. The concept changes continuously in line with macroeconomic developments, but the definitions of the term still have ancestry after Schumpeter more than 100 years later. Compare Schumpeter’s observations on innovation with the definitions below:

The innovation Standard TS/EN 16555 defines innovation as follows:

Implementation of new or significantly improved product (good or service), process or new marketing method, or new organizational method in business practices, workplace organization or external relations.

Eurostat and OECD define innovation in private companies in the Oslo Manual as:

The introduction of a new or significantly improved product (product or service), process, form of organization or marketing method. The innovation must be new (or greatly improved) for the company itself but may have been developed by others or introduced before by others.

Common to the definitions is that they are typically rooted in a development and cooperation paradigm and are now gradually moving towards a readiness/future paradigm. It is no longer just about development but also about creating entrepreneurial behavior, developing personal innovation skills, and seeing innovation as a subject. It is a function with professional expressions, methods and tools that can be fostered to make the company Future fit.

Oquam´s definition of innovation:

In Oquam, we work with innovation from the Future fit angle and have chosen to define the concept of innovation at the micro level and based on the dictionary’s description of the word innovation as “renewal”:

Innovation means renewal – new thinking, new ways of doing things to create changes that provide sustainable advantages in the competitive environment.

By including Schumpeter’s view of change in the definition, we also confront companies with the old paradox Søren Kierkegaard expressed in the quote, “Everyone wants development – but no change”. Quote and definition signal a need for alternative instruments in innovation work based on whether it is seen as development or change/future.