Types of Innovation

Open Innovation

Ideas and innovation can originate from external sources

Four types of innovation emerge

Incremental Radical Architectural Disruptive

Architectural Innovation

Leverages existing technology into new markets Alters the architecture of a product A new product, with known components, used in a novel way

Characteristics of Disruptive Innovation

Begins as a low cost solution to existing problem The rate of technological improvement increases

Incremental Innovation

Builds on established knowledge base Results from steady improvement Targets existing markets with existing technology

Radical Innovation

Draws on novel methods & materials Forms from an entirely new knowledge base, or Forms from a recombination of existing knowledge Targets new markets with new technology

Innovation Ecosystem

Established companies are part of an ecosystem (suppliers, buyers, complementors)

Closed Innovation

New products discovered, developed, and commercialized internally

Disruptive Innovation

Leverages new technologies in existing markets New product / process meets existing customer needs