Innovation:

• Definition: Innovation refers to improving or building upon an existing idea, product, or process. It focuses on introducing something new to a context in a way that adds value or solves a problem.
• Example: The smartphone (an innovation) evolved from the invention of the mobile phone, combining internet, apps, and touchscreens to improve upon the original idea.
• Focus: Innovation is often market-driven, aiming to meet consumer or societal needs, and is typically more about application and improvement.
• Risk Level: Moderate risk, as it often builds on existing inventions or ideas.
• Business Impact: Innovation leads to commercial success, as it improves usability, accessibility, or functionality.

Invention:

• Definition: Invention is the creation of something entirely new that did not previously exist, often based on scientific or technical discovery.
• Example: Thomas Edison’s light bulb is an invention because it was a completely new creation at the time, offering a new way of lighting homes and businesses.
• Focus: Invention is idea-driven and usually happens in the realm of research and experimentation, often without immediate concern for its market or societal fit.
• Risk Level: High risk, as it introduces a completely new concept or technology.
• Business Impact: Inventions can disrupt markets, but their success depends on further innovations that make them practical, usable, or accessible.

Key Differences:

• Innovation builds upon inventions to make them commercially viable, improve their functionality, or adapt them to real-world needs.
• Invention is the genesis of a new concept or technology, while innovation is the process of refining and applying it to benefit users.