Four Types Of Innovation

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Innovation
The chapter of Innovation aims to give an explanation of the phenomenon of innovation. Firstly, the term of innovation is defined. Then, classifications of innovation are discussed. Finally, the chapter ends with a short discussion regarding innovation. Usually innovations break into the companies from different sources and by different means. Moreover, an innovation might be discovered unintentionally, by accident (Novickis, Mitasiunas, Rikure, Jurenoks, 2011). However, as a rule, those cutting-edge and innovative concepts require big impact and are the result of hard work (Bisgaard, Høgenhaven, 2010). Nowadays, innovation is thought to be a vital and essential condition that ensures companies sustainability, growth and competitiveness.
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There are distinguished the following four types of innovation: product or service innovations; process innovations; marketing innovations and organizational innovations (Novickis, Mitasiunas, Rikure, Jurenoks, 2011). Accordingly, there are distinguished three degrees of novelty that are: new to the firm, new to the market and new to the world (Novickis, Mitasiunas, Rikure, Jurenoks, 2011). Finally, there are also three types of innovation nature identified: incremental, radical, disruptive (Novickis, Mitasiunas, Rikure, Jurenoks, 2011). This research is based on organizational innovation for this reason it is important to explain the term. Organizational innovation is differentiated into structural organizational innovations and procedural organizational innovations (Armbruster, Bikfalvi, Kinkel, Lay,…show more content…
According to the latter, structural organizational innovations embrace “the change from an organizational structure of functions (product development, production, human resources, etc.) into product- or customer-oriented lines, segments, divisions or business units” (Armbruster, Bikfalvi, Kinkel, Lay,

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